printmgr file - Deutsche Bank

Transcription

PROSPECTUS
DATED JUNE 5, 2014
NOT FOR DISTRIBUTION
IN THE UNITED STATES
Deutsche Bank Aktiengesellschaft
Prospectus
for the public offering
and
for admission to the regulated market of the Frankfurt Stock Exchange with simultaneous
admission to the sub-segment of the regulated market with additional post-admission
obligations (Prime Standard) of the Frankfurt Stock Exchange and for admission to the
regulated markets of the stock exchanges of Berlin, Dusseldorf, Hamburg, Hanover, Munich and
Stuttgart
of
299,841,985 new, no par value ordinary registered shares
from the capital increase against cash contributions from authorized capital with indirect subscription
rights (with exception of a fractional amount) resolved by the Management Board on
June 5, 2014 with approval of the Supervisory Board on the same day
– each with a notional value of € 2.56 per share in the share capital and
with full dividend rights as from January 1, 2014 –
of
Frankfurt am Main
International Securities Identification Number (ISIN): DE0005140008
German Securities Identification Number (WKN): 514000
Sole Global Coordinator and Bookrunner
Joint Bookrunners
UBS Investment Bank
Banco Santander
Barclays
COMMERZBANK
Goldman Sachs International
J.P. Morgan Securities plc
ABN AMRO
Banca IMI
BBVA
Citigroup
ING
MEDIOBANCA
SOCIETE GENERALE
Corporate & Investment
Banking
UniCredit Bank AG
Co-Lead Managers
Bankhaus Lampe
Crédit Agricole CIB
DZ BANK
Jefferies
Mizuho International
NATIXIS
Nomura
Raiffeisen Centrobank
RBC Capital Markets
Standard Chartered Bank
Wells Fargo Securities
TABLE OF CONTENTS
SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section A – Introduction and Warnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section B – Issuer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section C – Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section D – Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Section E – Offer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GERMAN TRANSLATION OF THE SUMMARY – ZUSAMMENFASSUNG . . . . . . . . . . . . . . . . . . . . . . . . . . .
Abschnitt A – Einleitung und Warnhinweis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Abschnitt B – Emittent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Abschnitt C – Wertpapiere . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Abschnitt D – Risiken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Abschnitt E – Angebot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RISK FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risks Related to the Business of Deutsche Bank . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risks Related to the Offering and the New Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GENERAL INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Documents Incorporated by Reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Persons Responsible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subject Matter of the Prospectus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Forward-Looking Statements; Third Party Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note Regarding Currency and Financial Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-GAAP Financial Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Statutory Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Documents on Display . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
THE OFFERING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subject Matter of the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Scheduled Timetable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subscription Offer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subscription Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allotment of Subscription Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercise of Subscription Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sale of Subscription Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subscription Rights Remaining Unexercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Underwriters and Underwriting Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Lock-up Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Selling Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stabilization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interests of Persons Participating in the Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
REASONS FOR THE OFFERING AND USE OF PROCEEDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INFORMATION ABOUT THE OFFERED NEW SHARES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Form, Voting Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividend Rights, Participation in Liquidation Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock Exchange Admission, Certificate, Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transferability, Selling Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ISIN /WKN /Common Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Paying and Registration Agent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DILUTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CAPITALIZATION AND INDEBTEDNESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capitalization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net Financial Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commitments and Contingent Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Working Capital Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GENERAL INFORMATION ABOUT DEUTSCHE BANK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate Name, Registered Office, Registration and Incorporation of the Company . . . . . . . . . . . . . . . .
History and Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fiscal Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Objectives of the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Group Structure and Principal Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term Credit Ratings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DIVIDEND POLICY AND EARNINGS PER SHARE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dividend Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Earnings per Share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
i
1
1
1
21
22
26
32
32
33
54
55
60
67
67
85
88
88
88
88
89
90
91
96
97
98
98
98
99
102
102
103
103
103
103
104
104
105
106
107
108
108
108
108
108
108
108
108
109
110
110
111
112
112
113
113
113
113
113
113
114
114
115
115
115
BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Competitive Environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate Divisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property and Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Intellectual Property Rights, Licenses, Domains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SELECTED BUSINESS AND FINANCIAL DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statement of Income Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Balance Sheet Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Cashflow Statement Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Certain Key Ratios and Figures of the Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deutsche Bank AG Share Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Significant Accounting Policies and Critical Accounting Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recently Adopted Accounting Pronouncements and New Accounting Pronouncements . . . . . . . . . . . . .
Results of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exposure to Monoline Insurers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tabular Disclosure of Contractual Obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated Statement of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional Information from the Audited Non-consolidated Financial Statements of Deutsche Bank AG
for the Fiscal Year 2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RISK MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk Management Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk Management Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk Assessment and Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Credit Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading Market Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nontrading Market Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operational Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liquidity Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Capital Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Regulatory Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Balance Sheet Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Overall Risk Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk Management for the First Three Months of 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SELECTED BANK STATISTICAL AND OTHER DATA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial Condition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Investment Portfolio (Securities Available for Sale) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loans Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loan Maturities and Sensitivity to Changes in Interest Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign Outstandings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Allowance for Loan Losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Return on Equity and Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Short-Term Borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MANAGEMENT AND EMPLOYEES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Management Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Supervisory Board . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional Information on Members of the Management Board and Supervisory Board . . . . . . . . . . . . . .
116
116
118
122
125
130
131
131
132
142
143
144
144
145
145
Corporate Governance Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General Meeting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TRANSACTIONS AND LEGAL RELATIONSHIPS WITH RELATED PARTIES . . . . . . . . . . . . . . . . . . . .
MATERIAL CONTRACTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
REGULATION AND SUPERVISION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Regulation and Supervision in Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
446
447
448
451
454
455
455
455
ii
146
146
146
147
192
198
200
201
203
205
205
210
212
219
221
223
301
318
323
329
340
341
363
366
368
405
405
408
409
410
410
413
414
417
418
418
419
419
420
434
445
Proposed Revision of the EU Directives on Deposit Guarantee and Investor Protection
Schemes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Further Regulation and Supervision in the European Economic Area . . . . . . . . . . . . . . . . . . . . . . . . .
Regulation and Supervision in the United States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MAJOR SHAREHOLDERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DESCRIPTION OF DEUTSCHE BANK AG’S SHARE CAPITAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Share Capital and Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stock Exchange Listing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Transferability of Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Development of the Share Capital since 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Authorized Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Conditional Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Convertible Bonds and Bonds with Warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treasury Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Authorization to Acquire Own Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General Provisions on Capital Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General Provisions on Shareholders’ Pre-Emptive Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General Provisions on Use of Profits and Dividend Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Squeeze-Out of Minority Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shareholding Notification Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TAXATION IN GERMANY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxation of the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxation of Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TAXATION IN THE UNITED KINGDOM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FINANCIAL STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GLOSSARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RECENT DEVELOPMENTS AND OUTLOOK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
iii
463
463
464
469
470
470
470
470
470
471
472
474
474
474
477
477
478
478
479
482
482
483
490
F-1
G-1
O-1
S-1
SUMMARY
The summary below reflects the requirements of the Commission Regulation (EC) No. 809/2004 of April 29,
2004, as amended (the “Prospectus Regulation”), including the contents requirement set out in Annex XXII
of the Prospectus Regulation (“Annex XXII”). Pursuant to Annex XXII, summaries of prospectuses are
made up of disclosure requirements known as “Elements”. These Elements are numbered in
Sections A – E (A.1 – E.7). This summary contains all the Elements required to be included in a summary for
this type of securities and issuer. Because some Elements are not required to be addressed, there may be
gaps in the numbering sequence of the Elements. Even though an Element may be required to be inserted
in the summary because of the type of securities and issuer, it is possible that no relevant information can
be given regarding the Element. In this case a short description of the Element is included in the summary
with the mention of “not applicable”.
Section A – Introduction and Warnings
A.1
Warnings
This summary is intended to be read as an introduction to
this securities prospectus (the “Prospectus”). Because of the
more detailed information contained elsewhere in the
Prospectus, investors are strongly recommended to carefully
read the entire Prospectus, and base any investment decision
regarding the shares or subscription rights of Deutsche Bank
Aktiengesellschaft on a review of the entire Prospectus.
Deutsche Bank Aktiengesellschaft, Frankfurt am Main
(“Deutsche Bank AG”, the “Bank” or the “Company”, and,
together with its consolidated subsidiaries the “Deutsche Bank
Group”, “Deutsche Bank” or the “Group”) and UBS Limited,
Banco Santander, S.A., Barclays Bank PLC, COMMERZBANK
Aktiengesellschaft, Goldman Sachs International, J.P. Morgan
Securities plc, ABN AMRO Bank N.V., Banca IMI S.p.A., Banco
Bilbao Vizcaya Argentaria, S.A., Citigroup Global Markets
Limited, ING Bank N.V., Mediobanca - Banca di Credito
Finanziario S.p.A., SOCIETE GENERALE and UniCredit Bank AG
(together the “Joint Bookrunners”), as well as Bankhaus
Lampe KG, CREDIT AGRICOLE CORPORATE AND
INVESTMENT BANK, DZ BANK AG Deutsche ZentralGenossenschaftsbank, Jefferies International Limited, Mizuho
International plc, NATIXIS, Nomura International plc, Raiffeisen
Centrobank AG, RBC Europe Limited, Standard Chartered Bank
and Wells Fargo Securities International Limited (together the
“Co-Lead Managers”, and together with the Joint Bookrunners,
the “Underwriters”) assume responsibility for the information
contained in this summary and its German translation pursuant
to Section 5(2b) no. 4 of the German Securities Prospectus Act
(Wertpapierprospektgesetz). The persons who have assumed
responsibility for this summary and its translation, or from
whom its issuance originates, can be held liable for the
information contained in this summary and its German
translation, but only insofar as the summary is misleading,
inaccurate or inconsistent when read together with other parts
of the Prospectus or if it does not provide, when read together
with the other parts of the Prospectus, all necessary key
information. In the event that a claim relating to the information
contained in the Prospectus is brought before a court, the
plaintiff investor might, under the national legislation of the
member states of the European Economic Area, be required to
bear the costs of translating the Prospectus prior to the
commencement of any legal proceedings.
A.2
Subsequent use of the
prospectus by financial
intermediaries
Not applicable. Consent regarding the use of the Prospectus
for a subsequent resale or final placement of securities by
financial intermediaries has not been granted.
Section B – Issuer
B.1
Legal and commercial name
Deutsche Bank Aktiengesellschaft.
1
B.2
Domicile, legal form, legislation
under which the issuer
operates, country of
incorporation
The Company’s head office is at Taunusanlage 12, 60325
Frankfurt am Main, Federal Republic of Germany
(“Germany”). The Company is registered with the
Commercial Register of the District Court of Frankfurt am
Main under registration number HRB 30000. Deutsche Bank
AG is a credit institution and stock corporation incorporated
under the laws of Germany.
B.3
Current operations and
principal business activities and
principal markets in which the
issuer competes
Deutsche Bank believes itself to be the largest bank in
Germany and one of the largest financial institutions in
Europe and the world, as measured by total assets of
€ 1,637 billion as of March 31, 2014.
Deutsche Bank is currently organized into the following five
corporate divisions:
• Corporate Banking & Securities (CB&S)
• Global Transaction Banking (GTB)
• Deutsche Asset & Wealth Management (DeAWM)
• Private & Business Clients (PBC)
• Non-Core Operations Unit (NCOU)
The five corporate divisions are supported by infrastructure
functions. In addition, Deutsche Bank has a regional
management function that covers regional responsibilities
worldwide.
Deutsche Bank has operations or dealings with existing or
potential customers in most countries in the world. These
operations and dealings include:
• subsidiaries and branches in many countries;
• representative offices in many other countries; and
• one or more representatives assigned to serve customers
in a large number of additional countries.
Corporate Banking & Securities Corporate Division
CB&S consists of the Markets and the Corporate Finance
business divisions. The Markets business division combines
sales, trading and structuring of a wide range of financial
market products, including bonds, equities and equity-linked
products, exchange-traded and over-the-counter derivatives,
foreign exchange, money market instruments, securitized
instruments and commodities. Corporate Finance is
responsible for mergers and acquisitions, as well as debt and
equity advisory and origination. Regional and industry-focused
teams ensure the delivery of the entire range of financial
products and services.
Global Transaction Banking Corporate Division
GTB provides domestic and cross-border payments, risk
mitigation and international trade finance for corporate clients
and financial institutions across the globe. GTB also offers
trust, agency, depositary, custody and related services.
Deutsche Asset & Wealth Management Corporate Division
DeAWM helps individuals and institutions worldwide to
preserve and increase their wealth. DeAWM offers traditional
and alternative investments across all major asset classes, as
well as tailored wealth management solutions and private
banking services to high net worth clients and family offices.
DeAWM clients can draw on Deutsche Bank’s entire range of
wealth and asset management capabilities as well as a
comprehensive selection of first-class products and solutions,
also by third-party providers.
2
Private & Business Clients Corporate Division
PBC provides banking and other financial services to private
customers, self-employed clients as well as small and
medium-sized businesses in Germany and internationally.
PBC’s product range includes payment and current account
services, investment management and retirement planning,
securities as well as deposits and loans. PBC is a leading
retail bank in Deutsche Bank’s home market, Germany, with
a franchise in Italy, Spain, Belgium, Portugal, Poland and
India. In China, PBC cooperates closely with Hua Xia Bank in
which it holds a 19.99 % stake and is its second largest
shareholder.
Non-Core Operations Unit Corporate Division
The NCOU was established in late 2012 and is responsible
for selling capital-intensive assets that are not core to the
Bank’s new strategy, thereby reducing risk and capital
demand. This also allows management to focus on strategic
core operations and, at the same time, increases the
transparency of external reporting.
Strategy
Strategy 2015+, which Deutsche Bank launched in
September 2012, sets out how Deutsche Bank plans to
address near-term challenges in a changed business
environment. It also positions Deutsche Bank to seize
opportunities presented by longer-term global trends and
achieve its vision to become the leading client-centric global
universal bank.
With Strategy 2015+, Deutsche Bank is reinforcing its
commitment to the universal banking model, to its home
market, Germany, and to its global presence. The strategy
emphasizes the need to become more client-centric,
enhance efficiency and business performance, strengthen its
capital position and change its culture. Five levers are key to
Deutsche Bank’s delivery on Strategy 2015+:
• Clients. Deutsche Bank serves a clearly defined portfolio
of clients and regions based on its ability to generate
value for them. Deutsche Bank has placed a strategic
emphasis on growth in its home market, Germany, in Asia
Pacific and in the Americas. Since the launch of Strategy
2015+, Deutsche Bank has aligned its organization more
closely to its clients. For instance, Deutsche Bank created
a dedicated platform for Germany’s “Mittelstand”,
intensified
local
coverage
across
regions
and
strengthened cross-divisional collaboration.
• Competencies. Deutsche Bank’s strategy is also based
on the strengths of its businesses. Deutsche Bank
believes that its four core corporate divisions – Corporate
Banking & Securities, Global Transaction Banking,
Deutsche Asset & Wealth Management and Private &
Business Clients – are well positioned to balance its
earnings mix, as planned, and to satisfy the increasingly
complex and global client needs.
• Capital. Deutsche Bank is committed to further
strengthening capital and leverage ratios. To achieve this,
Deutsche Bank is implementing a series of measures to
reinforce its capital position and reduce its risk-weighted
assets and leverage exposure. Deutsche Bank aims to
achieve a CRR/CRD 4 fully loaded Common Equity Tier 1
3
(CET 1) ratio of more than 10 % taking into account the
net proceeds of this Offering and the acquisition of
59,931,506 new shares in the Company by Paramount
Services Holdings Ltd., an investment vehicle ultimately
beneficially owned and controlled by His Excellency
Sheikh Hamad Bin Jassim Bin Jabor Al-Thani. Deutsche
Bank’s CRR/CRD 4 fully loaded CET 1 ratio improved from
below 6 % in June 2012 (estimated on a pro forma basis)
to 9.5 % at the end of March 2014. During the same
period, Deutsche Bank also significantly reduced its
balance sheet. Its Non-Core Operations Unit, which
manages its reduction of assets from non-core business
activities, made a significant contribution to this de-risking.
• Costs. Deutsche Bank aims to secure its long-term
competitiveness by building a world-class platform
through its Operational Excellence (OpEx) Program:
increasing quality, strengthening flexibility, reinforcing
controls and embedding a culture of cost efficiency.
Through investments of approximately € 4 billion,
Deutsche Bank intends to achieve annual cost savings of
€ 4.5 billion by the end of 2015. By the end of 2013,
Deutsche Bank had already delivered cumulative savings
of € 2.1 billion. Deutsche Bank believes that it is saving
money by becoming more efficient, buying smarter,
upgrading its technology, streamlining its businesses and
increasing the resiliency of its platform.
• Culture. Deutsche Bank recognizes the need for cultural
change in the banking sector and aspires to be at the
forefront of change. Deutsche Bank is committed to a
culture that aligns risks and rewards, attracts and
develops talented individuals, fosters teamwork and
partnership, and is sensitive to the society in which
Deutsche Bank operates. In 2013, Deutsche Bank laid the
foundations for cultural change. Deutsche Bank defined
new values and beliefs, strengthened its governance and
control mechanisms, reformed its compensation model
and established a program for sustainable change.
Strategy 2015+ seeks to strengthen Deutsche Bank’s global
platform and home market position, further leverage the
integrated performance of its universal banking model, build
capital strength, achieve operational excellence and cost
efficiency, and place Deutsche Bank at the forefront of
cultural change in the banking industry.
On May 18, 2014, Deutsche Bank reaffirmed its commitment
to its Strategy 2015+, provided updated financial targets and
further details of its growth strategy, and restated its
aspiration to be the leading client-centric global universal
bank. In connection with these aspirations, Deutsche Bank
has announced a series of measures to build Deutsche
Bank’s capital strength, enhance its competitiveness and
invest in its client franchises.
B.4a
4
Most significant recent trends
affecting the issuer and the
industries in which it operates
Competitor Landscape
Although the intervention by the European Central Bank
(generally referred to as the ECB) in financial markets appears
to have forestalled further iterations of the euro crisis and
somewhat improved the macroeconomic and market
environment in the eurozone in 2013, economic growth in
Europe remains weak, and many European economies
continue to face structural challenges as unemployment and
structural debt levels remain high. In the United States,
uncertainties concerning the political stalemate over fiscal
policy and potential changes to the U.S. Federal Reserve’s
program to make large purchases of long-term financial
assets to stimulate the U.S. economy (referred to as
“quantitative easing”) have repeatedly re-emerged to
endanger a still tepid and fragile economic recovery.
Emerging markets experienced volatility in 2013 amid
concerns that the level of foreign investment inflows would
decline substantially as the liquidity-enhancing measures in
the United States and Europe are tapered down. Against this
background and these uncertainties, Deutsche Bank has
observed subdued client activity in a number of its
businesses, with its credit flow businesses affected in
particular by the potential tapering of quantitative easing,
even as the ultra-low interest rate environment has also put
pressure on its margins in several traditional banking sectors.
These challenges have been exacerbated as Deutsche Bank
continues to face headwinds from the continuing
intensification of the regulatory environment as well as a
continued high level of litigation and enforcement matters
that have given rise to reputational issues and have put
further pressure on profitability and returns.
In this environment, the banking industry (including Deutsche
Bank, in all of its businesses) is experiencing intense
competition, and the sector is gradually becoming more
concentrated as a result. Strengthening capital levels,
improving efficiency and resolving legacy issues are at the
top of the strategic agendas of most of Deutsche Bank’s
competitors. This has led many of them to recalibrate their
business models to be able to generate attractive returns.
Several banks have announced measures to retrench their
businesses, especially in capital markets, which has been
highly affected by regulatory change.
Deutsche Bank believes that global trends such as the
growing economic importance of emerging markets, aging
populations in most developed economies and technological
advancements, will provide opportunities for future growth.
Banks, including Deutsche Bank, are considering these as
part of their business strategies and growth plans.
Deutsche Bank’s competitors include other universal banks,
commercial banks, savings banks, public sector banks,
brokers and dealers, investment banking firms, asset
management firms, private banks, investment advisors,
payments services providers, and insurance companies. As
some technology firms are showing increasing interest in
banking services, they are a potential new group of
competitors in the future. Deutsche Bank competes with
some of its competitors globally and with some others on a
regional, product, or niche basis. Deutsche Bank competes
on the basis of a number of factors, including the quality of
client relationships, transaction execution, its products and
services, innovation, reputation and price.
In Deutsche Bank’s home market, Germany, the retail
banking market remains fragmented, and its competitive
environment is influenced by the three pillar system of
private banks, public banks and cooperative banks. Following
some consolidation activity, particularly among public regional
commercial banks (Landesbanken) and private banks,
competitive intensity has increased in past years. Deutsche
5
Bank’s takeover of Deutsche Postbank AG has also affected
the domestic competitive landscape and further increased
the concentration of the banking sector.
Regulatory Reform
Implementation of global regulatory reforms in the wake of
the financial crisis is ongoing. Although several major
jurisdictions have made significant progress in finalizing new
legislation and new rules to implement globally agreed
reforms, in many instances detailed rules have yet to be
finalized, the pipeline of proposals yet to be agreed is still
significant and new proposals are emerging with potentially
significant impact.
Final legal frameworks
Recently, several major G20 commitments have been
finalized and implemented in law in major jurisdictions while
other initiatives are sufficiently advanced to allow them to be
factored into Deutsche Bank’s business strategy and
operations. The cumulative impact of these reforms will be
highly dependent on detailed rules and on the interaction
between regimes in different jurisdictions – e.g. the extent to
which they impose duplicative or conflicting requirements.
Areas with potential for significant impacts and implications
for competitiveness include:
• The Basel 3 framework on capital which has now been
implemented in the EU by the CRR/CRD 4 legislative
package (“CRR/CRD 4”), consisting of the Regulation (EU)
No. 575/2013 on prudential requirements for credit
institutions and investment firms (Capital Requirements
Regulation, “CRR”) and the Directive 2013/36/EU on access
to the activity of credit institutions and the prudential
supervision of credit institutions and investment firms
(Capital Requirements Directive 4, “CRD 4”). Most of the
provisions have become effective starting on January 1,
2014. CRR/CRD 4 will affect all parts of Deutsche Bank’s
business, including reporting and disclosure; the Basel 3
framework has also been implemented in the U.S. and will
apply to certain aspects of Deutsche Bank’s U.S. operations
beginning on January 1, 2015 and all of its U.S. operations
as of July 1, 2016;
• Under CRD 4, EU banks including Deutsche Bank are
subject to a new set of rules affecting remuneration for
staff whose professional activities have a material impact
on an institution’s risk profile, including technical
standards and guidelines promulgated in March 2014
detailing the operation of these rules;
• Structural reforms requiring the separation of certain
activities such as proprietary trading from deposit taking
may also have implications for competitiveness. Deutsche
Bank will be impacted by Section 619 of the U.S. DoddFrank Wall Street Reform and Consumer Protection Act –
referred to as the ‘Volcker rule’ – which must be
implemented by July 2015, and the German Act on the
Separation of Risks and Recovery and Resolution Planning
for Credit Institutions and Banking Groups (Gesetz zur
Abschirmung von Risiken und zur Planung der Sanierung
und Abwicklung von Kreditinstituten und Finanzgruppen),
which requires banks exceeding certain thresholds
(including Deutsche Bank) to separate proprietary trading
6
and certain other activities from the deposit-taking
business starting on July 1, 2015, subject to a twelve
months’ transition period;
• Introduction of capital, liquidity and other prudential
requirements for financial institutions considered
systematically important at a national level, such as the
U.S. Federal Reserve Board final rules regarding U.S.
capital, stress testing, liquidity and other enhanced
prudential requirements for the U.S. operations of foreign
banking organizations;
• Requirements for over-the-counter and standardized
derivatives to be centrally cleared, reported to trade
repositories and traded on formal platforms, via the DoddFrank Act in the U.S. and – for clearing and reporting – in
the EU via the Regulation on OTC Derivatives, Central
Counterparties and Trade Repositories (EMIR). Deutsche
Bank is advanced in planning, but impacts will depend on
final implementing rules, interaction between these and
other jurisdictions and outcomes of cross-border
discussions on OTC derivatives;
• Implementation of Basel Committee on Banking
Supervision (BCBS) and International Organization of
Securities Commissions (IOSCO) final minimum standards
for margin requirements for non-centrally cleared
derivatives, for which enabling legislation exists in the EU
(EMIR) and U.S. (Dodd-Frank Act) but where much of the
impact depends on how these requirements are
continuing to be implemented in detailed rule-making;
• The introduction of new resolution regimes for regulators
to restructure failing financial institutions and write-down
liabilities held by shareholders and creditors, via the DoddFrank Act in the U.S. and the Recovery and Resolution
Directive in the EU. Deutsche Bank’s recovery and
resolution planning is well-advanced and overseen by key
regulators, and Deutsche Bank has a large pool of
liabilities to meet bail-in requirements. However, lack of
cross-border coordination on resolution plans and their
recognition remains a key risk;
• Updated EU rules for market structure, pre- and post-trade
transparency for fixed income, currency and commodities
business (FICC), investor protection, market abuse and
sanctions through the Markets in Financial Instruments
Directive (MiFID) and the Market Abuse Directive (MAD).
MiFID also introduces the globally agreed trading mandate
for OTC derivatives in the EU. The new rules could have a
substantial impact on the way Deutsche Bank trades with
clients, its willingness to deploy risk capital and the way it
distributes products;
• Direct prudential supervision of Deutsche Bank by the
European Central Bank (ECB) (under the single
supervisory mechanism) starting on November 4, 2014;
currently the ECB is conducting a comprehensive
assessment of all banks which will be directly supervised
by the ECB in the future, including Deutsche Bank; and
• Measures to further integration of the European single
market for financial services and the European Banking
Union, including the single resolution mechanism in the
participating member states and harmonized rules for
deposit guarantee schemes and bank accounts.
7
The impact of these final and near-final reforms cannot be
fully known given their potential interaction with proposals
subject to ongoing negotiation and emerging new proposals.
As such, uncertainty remains over the cumulative impact of
regulatory reforms on Deutsche Bank, competitors and
financial services.
New or ongoing regulatory reforms
Areas of ongoing or new regulatory reform where there is a
high level of uncertainty over what the detailed final
requirements will entail but which have the potential to
increase pressure on the scope of the bank’s activities,
balance sheet size and profitability include:
• Outstanding elements of the Basel 3 framework and
ongoing review of other elements of the Basel 3
framework, particularly global and national calibration of
the leverage ratio, liquidity coverage ratio and net stable
funding ratio, but also capitalization for exposures to
central counterparties (CCPs), the fundamental review of
the trading book and work on securitization and riskweighted assets;
• Further proposals for capital, liquidity and other prudential,
operational or structural requirements for financial
institutions considered systemically important at a national
level;
• Legislation that would affect the competitive position of
European headquartered banks, such as the potential
introduction of a Financial Transaction Tax in several EU
countries, or EU legislation requiring structural reforms to
separate market making from deposit taking in banks with
trading assets above a certain threshold following the
Liikanen recommendations;
• Increased regulation of financial market activities, like
investment funds, benchmarks and indices, payment
services and “shadow banking”. The latter includes new
requirements for money market funds and securities
financing markets currently under discussion, as well as
future proposals on other non-bank financial institutions;
and
• Final standards restricting large exposures adopted by the
Basel Committee on Banking Supervision (BCBS) that
limit a bank’s exposures to a single counterparty to 25 %
of its Tier 1 capital (instead of 25 % of the sum of its
Tier 1 and 2 capital) and further limit exposures between
banks designated as global systemically important banks
to 15 % of Tier 1 capital, which are proposed to apply
from January 1, 2019.
Uncertainty regarding the final shape and interaction of these
initiatives make it difficult to assess the associated risks and
their potential impact. In particular, the requirement to
comply with different regulatory regimes in different
jurisdictions, including potentially conflicting or duplicative
requirements, may substantially increase the cost and
administrative burden of implementing these reforms.
Regulatory measures in individual jurisdictions which go
beyond the regulatory standards agreed on globally may also
result in an unlevel competitive playing field between
financial institutions from different jurisdictions.
8
Under the CRR/CRD 4 transitional rules, capital instruments no longer eligible are phased-out while the new
rules on regulatory adjustments are phased-in. These provisions are allowed in order to ease the transition for
banks to the fully loaded capital rules. The fully loaded CRR/CRD 4 metrics do not take these transitional rules
into account, i.e., all capital instruments no longer eligible are excluded and all new regulatory adjustments are
applied. The following table summarizes regulatory capital, RWA and capital ratios:
March 31, 2014
(unaudited, unless stated otherwise)
in € m.
(unless stated otherwise)
December 31, 2013
Pro forma
CRR/CRD 4
CRR/CRD 4 Pro forma
fully loaded CRR/CRD 4 fully loaded CRR/CRD 4 Basel 2.5
Common Equity Tier 1 capital before
regulatory adjustments . . . . . . . . . . . . . . . . .
Total regulatory adjustments to Common
Equity Tier 1 (CET 1) capital . . . . . . . . . . . . . .
Common Equity Tier 1 (CET 1) capital . . . . .
Additional Tier 1 (AT1) capital before
regulatory adjustments . . . . . . . . . . . . . . . . .
Total regulatory adjustments to Additional
Tier 1 (AT1) capital(1) . . . . . . . . . . . . . . . . . . . .
Additional Tier 1 (AT1) capital . . . . . . . . . . . .
Tier 1 capital (T1 = CET 1 + AT1) . . . . . . . . . .
Tier 2 (T2) capital before regulatory
adjustments . . . . . . . . . . . . . . . . . . . . . . . . . .
Total regulatory adjustments to Tier 2 (T2)
capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier 2 (T2) capital . . . . . . . . . . . . . . . . . . . . . . .
Total Regulatory capital (TC = T1 + T2) . . . .
Total risk-weighted assets . . . . . . . . . . . . . . .
Capital ratios
Common Equity Tier 1 capital ratio (as a
percentage of risk-weighted assets) . . . . . . .
Tier 1 capital ratio (as a percentage of riskweighted assets) . . . . . . . . . . . . . . . . . . . . . .
Total Regulatory capital ratio (as a percentage
of risk-weighted assets) . . . . . . . . . . . . . . . . .
54,768
54,458
53,846
53,557
53,558(2)
(19,437)
35,331
(4,712)
49,746
(19,850)
33,995
0
10,491
0
11,741
12,701(2)
0
0
35,331
(10,482)
10
49,755
0
0
33,995
(12,785)
0
51,733
(519)(2)
12,182(2)
50,717(2)
13,378
5,372
14,291
6,085
7,787(2)
(45)
13,333
48,664
373,313
(570)
4,802
54,558
376,091
(107)
14,184
48,179
350,143
9.5%
13.2%
9.7%
14.6%
12.8%(2)
9.5%
13.2%
9.7%
14.6%
16.9%(2)
13.0%
14.5%
13.8%
16.0%
18.5%(2)
(1,824) (15,024)(2)
51,733 38,534(2)
(906) (3,040)(2)
5,179
4,747(2)
56,912 55,464(2)
355,127 300,369(2)
Source: Deutsche Bank Interim Report as of March 31, 2014
1 Qualifying AT1 deductions that exceed AT1 capital are deducted from CET 1 capital (reflected in “Total regulatory
adjustments to Common Equity Tier 1 (CET 1) capital”).
2 Audited.
B.5
Corporate group of the issuer
and the position of the issuer
within the corporate group
Deutsche Bank AG is the parent company of an international
group consisting of banks, capital market companies, fund
management companies, a property finance company,
installment financing companies, research and consultancy
companies and other companies in Germany and elsewhere.
B.6
Persons who, directly or
indirectly, have a (notifiable)
interest in the issuer’s capital
and voting rights
On the basis of the shareholding notifications received by the
Bank and pursuant to other shareholder data provided to the
Bank, the following shareholders hold a significant interest
(i.e., an interest of at least 3 % of the voting share capital) in
Deutsche Bank AG:
Shareholder
Number of
Shares
H.E. Sheikh Hamad Bin Jassim
Bin Jabor Al-Thani, Doha,
Qatar(1) . . . . . . . . . . . . . . . . . . . . 62,889,620(1)
BlackRock, Inc., New York,
USA(2) . . . . . . . . . . . . . . . . . . . . . 47,748,904(2)
1
Percentage
of Voting
Rights
5.83%(1)
5.14%(2)
To the Bank’s knowledge, the shares and voting rights that are
attributed to His Excellency Sheikh Hamad Bin Jassim Bin Jabor
Al-Thani are indirectly held through Paramount Services Holdings Ltd.,
an investment vehicle ultimately beneficially owned and controlled by
9
2
him. The percentage of voting rights has been calculated on the basis
of the Bank’s 1,079,431,146 ordinary shares outstanding as of the
date of this Prospectus.
Based on a shareholding notification dated December 23, 2010; the
percentage of voting rights has been calculated on the basis of the
Bank’s registered share capital on the date of the shareholding
notification.
Other than as disclosed above, the Company has not been
notified by any party holding 3 % or more of the Company’s
shares as of June 2, 2014.
Each share of the Company is entitled to one vote at the
Company’s shareholders’ meeting. There are no special
voting rights for major shareholders of the Company.
B.7
Selected historical key financial information
The following tables summarize selected business and financial data of Deutsche Bank Group as
of and for the three-month periods ended March 31, 2014 and 2013 and as of and for the fiscal
years ended December 31, 2013, 2012 and 2011.
The consolidated income statement data and cash flow statement data for the three-month period
ended March 31, 2014 (as well as the corresponding figures for the three-month period ended
March 31, 2013) and the consolidated balance sheet data as of March 31, 2014 were derived from
Deutsche Bank’s condensed consolidated interim financial statements as of and for the threemonth period ended March 31, 2014 (with corresponding figures as of and for the three-month
period ended March 31, 2013) prepared in accordance with the International Financial Reporting
Standards of the International Accounting Standards Board (IASB) as adopted by the EU
(hereinafter referred to as “IFRS”). The consolidated income statement data and cash flow
statement data for the fiscal years ended December 31, 2013, 2012 and 2011, as well as the
consolidated balance sheet data as of December 31, 2013 and 2012 were derived from Deutsche
Bank’s consolidated financial statements for the fiscal year ended December 31, 2013 (with
corresponding figures for the preceding years) prepared in accordance with IFRS. The
consolidated balance sheet data as of December 31, 2011 has been derived from Deutsche
Bank’s consolidated financial statements as of and for the fiscal year 2012 (with corresponding
figures for 2011) prepared in accordance with IFRS. The condensed consolidated interim financial
statements as of and for the three-month period ended March 31, 2014 have been reviewed by
KPMG Aktiengesellschaft Wirtschaftsprüfungsgesellschaft (“KPMG”), and KPMG provided a
review report. The consolidated financial statements for the fiscal years 2013, 2012 and 2011
have been audited by KPMG, and KPMG issued an unqualified auditor’s report in each case. The
information provided herein with respect to capital resources and capital ratios as of and for the
three-month period ended March 31, 2014 was derived from the notes to the condensed
consolidated interim financial statements as of and for the three-month period ended March 31,
2014, and the information with respect to capital resources and capital ratios as of and for the
fiscal years ended December 31, 2013, 2012 and 2011 was derived from the notes to the
aforementioned audited consolidated financial statements unless stated otherwise.
Financial data labeled “audited” in the tables below were taken from the audited financial
statements described above and financial data labeled “reviewed” were taken from the reviewed
interim financial statements described above. Any financial data referred to as “unaudited” in the
tables below means that the financial data were neither “audited” nor “reviewed”.
The condensed consolidated interim financial statements as of and for the three-month period
ended March 31, 2014 and the consolidated financial statements as of and for the fiscal year
ended December 31, 2013 are contained in the section “Financial Statements” of this
Prospectus. The consolidated financial statements as of and for the fiscal years ended
December 31, 2012 and 2011 are incorporated by reference into this Prospectus.
10
Consolidated Statement of Income Data
in € m. (except per share data)
Interest and similar income . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . .
Net interest income . . . . . . . . . . . . . . . . . . . . . . .
Provision for credit losses . . . . . . . . . . . . . . . . . . .
Net interest income after provision for credit
losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commissions and fee income . . . . . . . . . . . . . . . .
Net gains (losses) on financial assets/liabilities at
fair value through profit or loss . . . . . . . . . . . . .
Net gains (losses) on financial assets available
for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income (loss) from equity method
investments . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income (loss) . . . . . . . . . . . . . . . . . . . . . . . .
Total noninterest income . . . . . . . . . . . . . . . . . .
Compensation and benefits . . . . . . . . . . . . . . . . .
General and administrative expenses . . . . . . . . . .
Policyholder benefits and claims . . . . . . . . . . . . . .
Impairment of intangible assets . . . . . . . . . . . . . .
Restructuring activities . . . . . . . . . . . . . . . . . . . . .
Total noninterest expenses . . . . . . . . . . . . . . . .
Income (loss) before income taxes . . . . . . . . . .
Income tax expense (benefit) . . . . . . . . . . . . . . . .
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . .
Net income (loss) attributable to noncontrolling
interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income (loss) attributable to Deutsche Bank
shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Basic earnings per share (in €)(1) . . . . . . . . . . . . . .
Diluted earnings per share (in €)(2) . . . . . . . . . . . . .
1
2
Three months
ended
March 31,
2014
2013
Year ended December 31,
2013
2012
2011
(reviewed)
6,246
6,594
2,871
2,944
3,375
3,650
246
354
25,601
10,768
14,834
2,065
(audited)
31,593
15,619
15,975
1,721
34,366
16,921
17,445
1,839
3,129
3,038
3,296
2,995
12,769
12,308
14,254
11,809
15,606
11,878
1,616
2,697
3,817
5,608
2,724
73
110
394
301
123
154
136
5,018
3,349
3,010
52
0
56
6,466
1,680
577
1,103
36
(97)
5,741
3,548
2,818
192
0
65
6,623
2,414
753
1,661
369
193
17,082
12,329
15,126
460
79
399
28,394
1,456
775
681
163
(120)
17,761
13,490
15,017
414
1,886
394
31,201
814
498
316
(264)
1,322
15,783
13,135
12,657
207
0
0
25,999
5,390
1,064
4,326
20
10
15
53
194
1,083
1.06
1.03
1,651
1.76
1.71
666
0.67
0.65
263
0.28
0.27
4,132
4.45
4.30
The Company calculated basic earnings per share for each period by dividing the Group’s net income (loss) attributable to
Deutsche Bank shareholders by the average number of common shares outstanding. The average number of common
shares outstanding is defined as the average number of common shares issued, reduced by the average number of shares
in treasury and by the average number of shares that will be acquired under physically-settled forward purchase contracts,
and increased by undistributed vested shares awarded under deferred share plans.
The Company calculated diluted earnings per share for each period by dividing the Group’s net income (loss) attributable to
Deutsche Bank shareholders by the average number of common shares outstanding, both after assumed conversion into
common shares of outstanding securities or other contracts to issue common stock, such as share options, convertible
debt, unvested deferred share awards and forward contracts. The aforementioned instruments are only included in the
calculation of diluted earnings per share if they are dilutive in the respective reporting period. The average number of
common shares outstanding is defined as the average number of common shares issued, reduced by the average number
of shares in treasury and by the average number of shares that will be acquired under physically-settled forward purchase
contracts, and increased by undistributed vested shares awarded under deferred share plans.
11
Consolidated Balance Sheet Data
in € m.
December 31,
March 31,
2014
2013
2012
(reviewed)
Assets:
Cash and due from banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16,433
Interest-earning deposits with banks . . . . . . . . . . . . . . . . . . . .
73,693
Central bank funds sold and securities purchased under
resale agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26,514
Securities borrowed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26,697
Total financial assets at fair value through profit or loss . . . . . 862,219
Financial assets available for sale . . . . . . . . . . . . . . . . . . . . . . .
51,204
Equity method investments . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,675
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380,954
Property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,318
Goodwill and other intangible assets . . . . . . . . . . . . . . . . . . . .
13,951
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168,189
8,727
Income tax assets(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,636,574
Liabilities and equity:
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 516,565
Central bank funds purchased and securities sold under
repurchase agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12,815
Securities loaned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,432
Total financial liabilities at fair value through profit or loss . . . 630,628
Other short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . .
55,175
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211,598
Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,614
2,589
Income tax liabilities(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132,895
Trust preferred securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10,249
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,580,557
Common shares, no par value, nominal value of € 2.56 . . . . .
2,610
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25,993
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29,574
Common shares in treasury, at cost . . . . . . . . . . . . . . . . . . . . .
(9)
Accumulated other comprehensive income (loss), net of
tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2,415)
Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
55,753
Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
264
Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
56,017
Total liabilities and equity . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,636,574
1
2011
(audited)
17,155
77,984
27,877
120,637
15,928
162,000
27,363
36,570
25,773
20,870
24,013
31,337
899,257 1,209,839 1,280,799
48,326
49,400
45,281
3,581
3,577
3,759
376,582 397,377 412,514
4,420
4,963
5,509
13,932
14,219
15,802
112,539 123,702 154,794
9,393
10,101
10,607
1,611,400 2,022,275 2,164,103
527,750
577,210
601,730
13,381
36,144
35,311
2,304
3,166
8,089
637,404 925,193 1,028,447
59,767
69,661
65,356
163,595 179,099 187,816
4,524
5,110
2,621
2,701
3,036
4,313
133,082 157,325 163,416
11,926
12,091
12,344
1,556,434 1,968,035 2,109,443
2,610
2,380
2,380
26,204
23,776
23,695
28,376
29,199
30,119
(13)
(60)
(823)
(2,457)
(1,294)
(1,981)
54,719
54,001
53,390
247
239
1,270
54,966
54,240
54,660
1,611,400 2,022,275 2,164,103
Income tax assets and Income tax liabilities comprise both deferred and current taxes.
Consolidated Cashflow Statement Data
Three months
ended
March 31,
in € m.
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income (loss) adjusted for non-cash charges, credits
and other items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by (used in) operating activities . . .
Net cash provided by (used in) investing activities . . . .
Net cash provided by (used in) financing activities . . . .
Net effect of exchange rate changes on cash and
cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents (total) . . . . . . . . . . . . . . .
12
2014
2013
(reviewed)
1,103
1,661
Year ended
December 31,
2013
2012
(audited)
681
316
2011
4,326
2,190
3,828
(2,634)
(3,281)
3,095
7,756
(1,329)
(1,866)
4,483
5,365 8,412
7,184 (23,954) 7,802
(3,015) (2,647) 11,915
(544) (2,152) (3,160)
110
46,406
(284)
57,598
(907)
56,041
39 (964)
53,321 81,946
Certain Key Ratios and Figures of the Group
Three months
ended March 31,
2014
(reviewed, unless
stated otherwise)
Book value per basic share
outstanding(1)(2) . . . . . . . . . . . . . . . . . . . . . . .
Tangible book value per basic share
outstanding(1)(3) . . . . . . . . . . . . . . . . . . . . . . .
Pre-tax return on average shareholders’
equity(1)(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pre-tax return on average active equity(5) . . . .
Post-tax return on average shareholders’
equity(1)(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Post-tax return on average active equity(7) . . .
Cost/income ratio(8) . . . . . . . . . . . . . . . . . . . . .
Compensation ratio(9) . . . . . . . . . . . . . . . . . . . .
Noncompensation ratio(10) . . . . . . . . . . . . . . . .
Tier 1 capital ratio at period-end(1)(11) . . . . . . . .
Common Equity Tier 1 capital ratio at periodend(1)(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Year ended
December 31,
2013
2012
2011
(audited, unless stated otherwise)
€ 54.31
€ 53.24
€ 57.37
€ 58.11
€ 40.72
€ 39.69
€ 42.26
€ 40.91
12.0%
12.2%
2.6%
2.6%
1.3%
1.4%
10.2%
10.3%
7.8%
7.9%
77.0%
39.9%
37.1%
13.2%
1.2%
1.2%
89.0%
38.6%
50.3%
16.9%
0.5%
0.5%
92.5%
40.0%
52.5%
15.1%
8.2%
8.2%
78.2%
39.5%
38.7%
12.9%
13.2%
12.8%
11.4%
9.5%
Source: Deutsche Bank Interim Report as of March 31, 2014, Deutsche Bank Annual Report 2013 on Form 20-F
1 Unaudited.
2 Shareholders’ equity divided by the number of basic shares outstanding (both at period-end).
3 Shareholders’ equity less goodwill and other intangible assets, divided by the number of basic shares outstanding (both at
period-end).
4 Income before income taxes attributable to the Company’s shareholders as a percentage of average shareholders’ equity.
5 Income before income taxes attributable to the Company’s shareholders as a percentage of average active equity. The
Company calculates this adjusted measure of its return on average shareholders’ equity to make it easier to compare the
Company to its competitors. The Company refers to this adjusted measure as the Company’s “Pre-tax return on average
active equity”. However, this is not a measure of performance under IFRS and the Company’s ratio based on average active
equity should not be compared to other companies’ ratios without considering the differences in the calculation of the ratio.
The items for which the Company adjusts the average shareholders’ equity of € 56.1 billion for 2013, € 55.6 billion for 2012
and € 50.5 billion for 2011, are average dividends of € 646 million in 2013, € 670 million in 2012 and € 617 million in 2011,
for which a proposal is accrued on a quarterly basis and which are paid after the approval by the annual general meeting
following each year. In 2011 the average shareholders’ equity was also adjusted for average accumulated other
comprehensive income excluding foreign currency translation (all components net of applicable tax) of € (519) million.
6 Net income attributable to the Company’s shareholders as a percentage of average shareholders’ equity.
7 Net income attributable to the Company’s shareholders as a percentage of average active equity.
8 Total noninterest expenses as a percentage of net interest income before provision for credit losses, plus noninterest
income.
9 Compensation and benefits as a percentage of net interest income before provision for credit losses, plus noninterest
income.
10 Noncompensation noninterest expenses, which is defined as total noninterest expenses less compensation and benefits, as
a percentage of net interest income before provision for credit losses, plus noninterest income.
11 Ratios presented for March 31, 2014 are based upon transitional rules of the CRR/CRD 4 capital framework. Ratios for
December 31, 2013, 2012 and 2011 are based on the amended capital requirements for trading book and securitization
positions following the Capital Requirements Directive 3, also known as “Basel 2.5”, as implemented in the German
Banking Act and the Solvency Regulation excluding transitional items pursuant to Section 64h (3) of the German Banking
Act. The capital ratios relate the respective capital to risk-weighted assets for credit, market and operational risk.
Deutsche Bank AG Share Information
in € per share
Share price (XETRA):
Share price at the end of the reporting period . . . . . . . . . . .
Share price high during the reporting period . . . . . . . . . . . .
Share price low during the reporting period . . . . . . . . . . . . .
Three months
ended
March 31,
2014
2013
2012
2011
32.48
40.00
30.76
34.68
38.73
29.41
32.95
39.51
22.11
29.44
48.70
20.79
Year ended
December 31,
13
Significant changes in the
issuer’s financial condition and
operating results
Recent developments
Between March 31, 2014 and the date of this Prospectus,
there have been the following significant developments with
respect to the financial condition and operating results of
Deutsche Bank.
In April and May 2014, CB&S saw an ongoing challenging
market environment with low customer volumes and low
volatilities in many key areas. Based on its performance since
March 31, 2014, Deutsche Bank expects that CB&S
revenues in the second quarter of 2014 may be lower than in
the same period in 2013 by a similar to slightly greater extent
than the year-over-year decline experienced in the first
quarter of 2014, also affecting income before income taxes in
the second quarter 2014 versus the corresponding period in
2013. Fixed income revenues have largely declined in the
second quarter of 2014 versus the same period in 2013 at a
pace that is broadly similar to that experienced in the first
quarter of 2014, while equities revenues, which had
increased in the first quarter of 2014, are now trending
downward versus the same period in 2013. PBC’s income
before income taxes in the first two months of the second
quarter 2014 was below the comparison period 2013.
Disregarding a number of smaller gains that occurred in the
corresponding period in 2013 but did not recur in 2014,
income before income taxes in April and May 2014 was
broadly in line with the prior year period, with higher
revenues and a decline in provision for credit losses reflecting
a continued positive economic environment in Germany,
partly offset by a higher cost base. Since March 31, 2014,
GTB has recorded an improvement in income before income
taxes versus the comparison period 2013 supported by a
growth in underlying revenues in line with Deutsche Bank’s
strategy and a lower cost base. DeAWM’s performance in
the first two months of the second quarter 2014 improved
versus the comparison period 2013, mainly driven by lower
costs to achieve in connection with the Operational
Excellence (OpEx) program and cost efficiencies resulting
from an improved operating and technology platform, partly
offset by slightly lower revenues. Loss before income taxes
in the NCOU declined in April and May 2014 as compared to
the same period in 2013. Lower revenues and an improved
cost base reflect the effects from Deutsche Bank’s de-risking
strategy.
On April 28, 2014, the Management Board of Deutsche Bank
AG resolved with the approval of the Chairman’s Committee
of the Supervisory Board to undertake an inaugural multicurrency issuance of Additional Tier 1 notes. The transaction
had a total volume of approximately € 3.5 billion and was the
first step towards reaching the overall targeted volume of
approximately € 5 billion of CRR/CRD 4 compliant Additional
Tier 1 capital which Deutsche Bank plans to issue by the end
of 2015. The transaction included the offering of the
€ 1.75 billion Undated Non-cumulative Fixed to Reset Rate
Additional Tier 1 Notes (the “Euro AT1 Notes”), the £ 650
million Undated Non-cumulative Fixed to Reset Rate
Additional Tier 1 Notes (the “GBP AT1 Notes”) and the
$ 1.25 billion Undated Non-cumulative Fixed to Reset Rate
Additional Tier 1 Notes (the “USD AT1 Notes” and, together
with the Euro AT1 Notes and the GBP AT1 Notes, the “AT1
Notes”) which were issued by Deutsche Bank in May 2014.
The AT1 Notes are intended to qualify as Additional Tier 1
14
instruments within the meaning of Art. 52(1) CRR. The AT1
Notes were issued with warrants attached that provide the
right to subscribe for a total of 30,250 new ordinary shares of
Deutsche Bank AG.
On May 15, 2014, Deutsche Bank announced that it reached
an agreement with Blackstone Real Estate Partners VII to sell
Nevada Property 1 LLC, the owner of The Cosmopolitan of
Las Vegas, a resort and casino. In the transaction, Blackstone
Real Estate Partners VII will acquire 100 % of The
Cosmopolitan of Las Vegas for U.S. $ 1.73 billion, which will
be paid in cash. The transaction is subject to regulatory
approvals. Deutsche Bank expects the sale to have a net
positive impact on Deutsche Bank’s CRR/CRD 4 fully loaded
Common Equity Tier 1 ratio of approximately five basis points
upon closing of the transaction. The Cosmopolitan of Las
Vegas is held within Deutsche Bank’s Non-Core Operations
Unit (NCOU).
On May 18, 2014, Deutsche Bank announced that it has agreed
to place 59,931,506 new shares at a price of € 29.20 per share
with Paramount Services Holdings Ltd., an investment vehicle
ultimately beneficially owned and controlled by His Excellency
Sheikh Hamad bin Jassim Bin Jabor al Thani, who intends to
remain an anchor investor in Deutsche Bank (the “Anchor
Investment”). The transaction was structured by Deutsche
Bank as a capital increase excluding subscription rights.
Pursuant to the terms of the Anchor Investment, Paramount
Services Holdings Ltd. has committed to exercise all of the
subscription rights in the Offering it is being allocated with
respect to its entire shareholding in Deutsche Bank as of the
record date. The capital increase in connection with the Anchor
Investment was registered with the Commercial Register prior
to the Offering.
On May 18, 2014, Deutsche Bank announced a capital
increase with proceeds expected to be approximately
€ 8 billion. The announced transaction includes the issuance
of new shares with proceeds of € 1.75 billion to the anchor
investor (as described above) and the fully underwritten
rights issue that is the subject of this Prospectus. Deutsche
Bank also reaffirmed its commitment to its Strategy 2015+,
and provided updated financial targets and further details of
its growth strategy.
Three-month periods ended March 31, 2014
The key financial highlights for the Group in the first quarter
2014 were as follows:
• Group net revenues of € 8.4 billion in first quarter 2014,
down 11 % versus first quarter 2013 largely reflecting
revenue declines in CB&S;
• Income before income taxes of € 1.7 billion, down 30 %
from first quarter 2013;
• Net income decreased from € 1.7 billion in first quarter
2013 to € 1.1 billion in first quarter 2014;
• CRR/CRD 4 fully loaded Common Equity Tier 1 capital
ratio was 9.5 % at the end of first quarter 2014;
• Adjusted CRR/CRD 4 leverage ratio was 3.2 % at the end
of first quarter 2014;
• CRR/CRD 4 fully loaded risk-weighted
€ 373 billion as of March 31, 2014.
assets
of
15
The financial key performance indicators (KPIs) of the Group
as of March 31, 2014 are detailed in the table below:
Group Key Performance Indicators
Post-tax return on average active equity . . . . . . . .
Cost/income ratio(3) . . . . . . . . . . . . . . . . . . . . . . . . .
Cost savings(4)(5) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Costs to achieve savings(5)(6) . . . . . . . . . . . . . . . . .
CRR/CRD 4 pro forma fully loaded Common
Equity Tier 1 ratio(5)(7) . . . . . . . . . . . . . . . . . . . . . .
Adjusted CRR/CRD 4 leverage ratio(5)(8) . . . . . . . .
March 31, March 31,
2014
2013
(reviewed, unless
stated otherwise)
7.9%(1)
12.3%(2)
77.0%(1)
70.5%(2)
€2.3 bn(1) €0.6 bn(2)
€2.1 bn(1) €0.7 bn(2)
9.5%
3.2%
8.8%
N/A
N/A – Not available
1 For the three-month period ended March 31, 2014.
2 For the three-month period ended March 31, 2013.
3 Total noninterest expenses as a percentage of total net interest
income before provision for credit losses plus noninterest income.
4 Cost savings resulting from implementation of the OpEx Program.
5 Unaudited.
6 Cost-to-achieve directly required for the realization of savings in the
OpEx Program.
7 The CRR/CRD 4 pro forma fully loaded Common Equity Tier 1 ratio
represents Deutsche Bank’s calculation of its Common Equity Tier 1
ratio without taking into account the phase in provisions of
CRR/CRD 4.
8 The adjusted CRR/CRD 4 leverage ratio represents Deutsche Bank’s
calculation following the publication of CRR/CRD on June 27, 2013 as
amended.
Results in the first quarter of 2014 reflect a mixed
performance with a reduced year-on-year revenue
contribution from Corporate Banking & Securities (CB&S),
Deutsche Asset & Wealth Management (DeAWM), and
Deutsche Bank’s Non-Core Operating Unit (NCOU) with
substantially unchanged results across Global Transaction
Banking (GTB) and slightly higher revenues in Private &
Business Clients (PBC). Lower client investment activity
exacerbated by uncertainty around emerging markets as well
as continued low interest rates and a highly competitive
environment are reflected in decreased revenues across
most businesses. Deutsche Bank made further progress in
its Operational Excellence (OpEx) Program, which focuses in
2014 on more complex initiatives. Cost reductions from the
ongoing implementation of OpEx allowed Deutsche Bank to
counterbalance higher cost caused by increasing regulatory
requirements, and enabled it to continue to invest in platform
improvements.
Deutsche Bank’s net revenues in the first quarter of 2014
decreased by 11 %, or € 999 million, to € 8.4 billion
compared to € 9.4 billion in the first quarter of 2013. In
CB&S, revenues were € 4.1 billion, down € 471 million, or
10 %, versus the first quarter of 2013. The decrease was
mainly attributable to reduced revenues in Sales & Trading
(debt and other products), which were down by € 285 million,
or 10 %, compared to the first quarter of 2013, resulting from
lower client activity reflecting low volatility and ongoing
uncertainty around emerging markets. In addition, revenues
in CB&S decreased due to losses from Debt Valuation
Adjustment (DVA) in the first quarter of 2014, whereas a gain
for DVA was recorded in the first quarter of 2013. PBC
revenues were € 2.5 billion in the first quarter of 2014, up
€ 91 million, or 4 %, compared to the first quarter of 2013.
The increase was primarily driven by subsequent gains
16
related to a business sale closed in a period prior to the first
quarter of 2014, but also due to higher revenues in
investment and insurance products. Revenues in GTB were
€ 1.0 billion, marginally down by € 6 million, or 1 %, from the
first quarter of 2013, impacted by a highly competitive
environment and continued low interest rates. DeAWM
revenues decreased by € 177 million, or 14 %, to
€ 1.1 billion, versus the first quarter of 2013, mainly driven by
mark-to-market movements on policyholder positions in
Abbey Life, largely offset in noninterest expenses. Revenues
in the NCOU were € 74 million, a decrease by € 367 million,
or 83 %, in the first quarter of 2014, reflecting a reduction of
assets following Deutsche Bank’s de-risking activities and
losses incurred by the Special Commodities Group (SCG),
primarily driven by losses on Deutsche Bank’s exposure to
traded products in the U.S. power sector. In Consolidation &
Adjustments (C&A), containing the reconciliation of the
results of the business segments to the consolidated results,
net revenues declined from negative € 259 million in the first
quarter of 2013 to negative € 327 million in the first quarter of
2014. This development was predominantly attributable to
valuation and timing differences from different accounting
methods used for management reporting and IFRS as well as
negative impacts from funding valuation adjustments on
internal uncollateralized derivatives.
Provision for credit losses was € 246 million in the first
quarter of 2014, a decrease of € 108 million, or 30 %,
compared to the first quarter of 2013. This reduction primarily
reflects the non-recurrence of a number of large single items
in GTB, CB&S and NCOU recorded in the first quarter of
2013. The provision for credit losses increase in PBC was
driven by a positive one-off effect from portfolio sales in the
first quarter of 2013 that was not replicated in the first
quarter of 2014. After adjusting for this one-off effect, the
provision for credit losses in PBC decreased, reflecting the
ongoing strong credit environment in Germany.
Noninterest expenses were € 6.5 billion in the first quarter of
2014, down € 157 million, or 2 %, compared to the first
quarter of 2013. Compensation and benefits, which
amounted to € 3.3 billion, were down € 200 million, or 6 %,
compared to the first quarter of 2013. This primarily reflects
lower variable compensation, including reduced deferred
award amortization, mainly in CB&S. General and
administrative expenses were € 3.0 billion, up € 192 million,
or 7 %, compared to the first quarter of 2013. One driver for
the increase was cost-to-achieve related to OpEx, which was
€ 301 million in the first quarter of 2014 versus € 219 million
in the first quarter of 2013. Other drivers were higher
expenses relating to increased regulatory requirements,
higher investments in platforms, as well as an impairment in
NCOU. In part, these costs were offset by lower litigation
related charges and the ongoing positive impact from the
OpEx Program. Policyholder benefits and claims, which are
offsetting mark-to-market movements on investments held
to back insurance policyholder claims in Abbey Life, were
€ 52 million in the first quarter of 2014, a reduction of
€ 141 million, compared to the first quarter of 2013.
Overall, income before income taxes was € 1.7 billion in the
first quarter of 2014 versus € 2.4 billion in the first quarter of
2013, mainly driven by lower revenues which were partly
offset by costs reductions.
17
Net income for the first quarter of 2014 was € 1.1 billion,
compared to € 1.7 billion in the first quarter of 2013. Income
tax expense in the first quarter of 2014 was € 577 million
versus € 753 million in the first quarter of 2013. The effective
tax rate in the first quarter of 2014 was 34 %, versus 31 % in
the first quarter of 2013.
Fiscal years 2013 and 2012
The key financial highlights for the Group in 2013 were as
follows:
• Group net revenues of € 31.9 billion in 2013, down 5 %
versus 2012 largely reflecting revenue declines in CB&S;
• Income before income taxes of € 1.5 billion in 2013, up
79 % from 2012;
• Net income increased from € 316 million in 2012 to
€ 681 million in 2013;
• CRR/CRD 4 pro forma fully loaded Common Equity Tier 1
ratio was 9.7 % (Basel 2.5 CET 1: 12.8 %) at the end of
2013, compared to 7.8 % (Basel 2.5 CET 1: 11.4 %) at the
end of 2012;
• Adjusted pro forma CRR/CRD 4 leverage ratio was 3.1 %
at year-end 2013; and
• CRR/CRD 4 pro forma fully loaded risk-weighted assets of
€ 350 billion (Basel 2.5 RWA € 300 billion) as of
December 31, 2013 down by 11 % compared to
December 31, 2012 (down 10 % based on Basel
2.5 RWA).
The financial key performance indicators (KPIs) of the Group
as of December 31, 2013 are detailed in the table below:
December 31, December 31,
2013
2012
(audited, unless stated
otherwise)
Post-tax return on average active
equity . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost/income ratio(3) . . . . . . . . . . . . . . . . . .
Cost savings(4)(5) . . . . . . . . . . . . . . . . . . . .
Costs to achieve savings(5)(6) . . . . . . . . . .
CRR/CRD 4 pro forma fully loaded
Common Equity Tier 1 ratio(5)(7) . . . . . .
Adjusted CRR/CRD 4 leverage ratio(5)(8) . . .
1.2%(1)
89.0%(1)
€ 2.1 bn
per annum(1)
€ 1.8 bn(1)
0.5%(2)
92.5%(2)
€0.4 bn
per annum(2)
€0.5 bn(2)
9.7%
3.1%
7.8%
N/A
1 For the fiscal year 2013.
2 For the fiscal year 2012.
3 Total noninterest expenses as a percentage of total net interest
income before provision for credit losses plus noninterest income.
5 Unaudited.
6 Cost-to-achieve directly required for the realization of savings in the
OpEx Program.
7 The CRR/CRD 4 pro forma fully loaded Common Equity Tier 1 ratio
represents Deutsche Bank’s calculation of its Common Equity Tier 1
ratio without taking into account the phase in provisions of CRR/CRD 4.
8 The adjusted CRR/CRD 4 leverage ratio represents Deutsche Bank’s
calculation following the publication of CRR/CRD on June 27, 2013 as
amended. Not available for end of 2012.
2013 was the second consecutive year in which Deutsche
Bank had invested in the bank’s future growth and in further
18
strengthening its controls while addressing ongoing legal and
regulatory issues. Costs-to-achieve of Deutsche Bank’s
Operational Excellence (OpEx) Program and litigation
expenses impacted its financial results in 2013.
Net revenues in 2013 were € 31.9 billion, a 5 % decline from
2012. Most of the decline in net revenues was attributable to
CB&S, along with slight decreases in GTB and NCOU, while
PBC revenues were stable and DeAWM revenues increased.
Noninterest expenses in 2013 were € 28.4 billion, down 9 %
from 2012, reflecting significant cost reductions as well as a
substantial reduction in impairment charges for goodwill and
intangible assets as compared to 2012. The cost reductions
included a € 1.2 billion (9 %) decrease in Deutsche Bank’s
compensation and benefits expenses in 2013 compared to
2012, due to reduced bonus and retention awards and as a
result of the ongoing implementation of OpEx. Expenses also
included significant litigation-related expenses of € 3.0 billion
in 2013 (2012: € 2.5 billion).
In this context, Deutsche Bank generated net income of
€ 681 million in 2013 (2012: € 316 million) and income before
income taxes of € 1.5 billion (2012: € 814 million).
Despite lower net revenues compared to 2012, the cost/
income ratio improved from 92.5 % in 2012 to 89.0 % in
2013, reflecting the continued reduction of noninterest
expenses in the course of Deutsche Bank’s OpEx Program.
OpEx Program cost savings of € 2.1 billion were achieved in
2013, surpassing the target of € 1.6 billion. Cumulative costs
to achieve were € 1.8 billion (thereof € 1.3 billion spent in
2013 and € 0.5 billion spent in 2012).
Due to the increase in net income, the issuance of new
shares and the accelerated capital formation and de-risking
activities in 2013, Deutsche Bank’s Basel 2.5 Common Equity
Tier 1 capital ratio improved to a level of 12.8 % as of
December 31, 2013 and the Tier 1 capital ratio improved to a
level of 16.9 %. The CRR/CRD 4 pro forma fully loaded
Common Equity Tier 1 ratio also increased substantially from
7.8 % in 2012 to 9.7 % at the end of 2013, reflecting
substantial progress on portfolio optimization and de-risking
of non-core activities.
The adjusted pro forma CRR/CRD 4 leverage ratio was 3.1 %
at the end of 2013 based on a CRR/CRD 4 pro forma leverage
exposure of € 1,445 billion as of December 31, 2013.
Risk-weighted assets based on Basel 2.5 at year-end 2013
were € 300 billion, versus € 334 billion at year-end 2012,
largely due to management actions aimed at de-risking
Deutsche Bank’s business. During 2013, Deutsche Bank
achieved a reduction in CRR/CRD 4 pro forma fully loaded
risk-weighted assets to € 350 billion.
Fiscal years 2012 and 2011
Despite the challenging environment in 2012, Deutsche
Bank’s revenue performance was resilient, with increases in
almost every business division in the “Core Bank” (CB&S,
GTB, DeAWM and PBC), and its provision for credit losses
was lower than in 2011. However, results especially in the
second half of 2012 reflected the impact of several actions
taken to mobilize Deutsche Bank’s Strategy 2015+. These
actions resulted mainly in higher noninterest expenses
versus the full-year 2011, including cost-to-achieve related to
19
Deutsche Bank’s Operational Excellence Program (OpEx) and
the integration of Postbank totaling € 0.9 billion. Deutsche
Bank met the savings objectives of OpEx for year-end 2012,
achieving savings of € 0.4 billion in the second half of 2012.
Expenses also included impairments of goodwill and other
intangible assets (€ 1.9 billion) as well as significant litigationrelated charges (€ 2.2 billion). In addition, Deutsche Bank’s
results in 2012 were impacted by further specific items of
€ 1.3 billion, such as charges related to turnaround measures
in its commercial banking activities in the Netherlands, other
net charges and results from de-risking in the NCOU.
In this context, Deutsche Bank generated a 2012 net income
of € 316 million (2011: € 4.3 billion) and income before
income taxes of € 814 million compared with € 5.4 billion in
2011. Excluding the impairment of goodwill and other
intangible assets as well as the significant litigation-related
charges, full year income before income taxes for the Group
would have been € 4.9 billion in 2012, to which the Core
Bank contributed € 6.5 billion.
In 2012, Deutsche Bank reviewed its variable compensation
levels and established a Compensation Panel. As a first
result, though compensation and benefits expenses
increased 3 % in 2012 from 2011, variable compensation
came down by 11 % versus 2011, and Deutsche Bank
reduced its deferral rate from 61 % to 47 %, thus reducing
respective charges on future year’s results.
Overall, Deutsche Bank considerably strengthened its capital
position, liquidity reserves and refinancing sources in 2012.
Due to the annual net income and the accelerated capital
formation and de-risking activities, including measures taken
in the NCOU, Deutsche Bank’s Tier 1 capital ratio according
to Basel 2.5 improved to a level of 15.1 % and its Core Tier 1
(now called “Common Equity Tier 1”) capital ratio increased
to 11.4 % as of December 31, 2012. The pro forma Basel 3
fully loaded Core Tier 1 capital ratio also increased
substantially to 7.8 % up from less than 6 % in 2011 and
surpassed the communicated target of 7.2 %, reflecting
strong delivery on portfolio optimization and de-risking of noncore activities, as well as model and process enhancements.
Risk-weighted assets at year-end 2012 were € 334 billion,
versus € 381 billion at year-end 2011, largely due to
management actions aimed at de-risking Deutsche Bank’s
business. In the second half of 2012, Deutsche Bank
achieved a reduction in pro forma Basel 3 risk-weighted asset
equivalents of € 80 billion, versus its communicated target of
€ 90 billion for March 31, 2013.
Deutsche Bank’s liquidity reserves were in excess of
€ 230 billion as of December 31, 2012, including reserves
held on a Postbank AG level, which contributed in excess of
€ 25 billion at December 31, 2012 (December 31, 2011:
€ 223 billion, excluding Postbank).
B.8
Selected key pro forma
financial information
Not applicable. No pro forma financial information needs to
be presented.
B.9
Profit forecasts or estimates
Not applicable. No profit forecast or estimate has been made.
B.10
Qualifications in the audit
report on the historical financial
information
Not applicable. The consolidated financial statements for the
fiscal years 2013, 2012 and 2011 and the non-consolidated
financial statements for the fiscal year 2013 have been
20
audited by KPMG, and KPMG issued an unqualified auditor’s
report in each case.
B.11
Insufficiency of the issuer’s
working capital for its present
requirements
Not applicable. The Company believes that the Deutsche
Bank Group has sufficient working capital to meet its
payment obligations for at least the next twelve months.
Section C – Securities
C.1
Type and class of the securities,
securities identification
According to the Company’s articles of association (Satzung)
(the “Articles of Association”), all shares of the Company are
issued in the form of registered shares. All shares of the
Company, including the new shares (the “New Shares”)
offered in this offering (the “Offering”), are shares of the same
class.
International Securities Identification Number (ISIN)
New Shares: DE0005140008
Subscription rights: DE000A11QV10
German Securities Identification Number (WKN)
New Shares: 514000
Subscription rights: A11QV1
Trading Symbol
DBK (German stock exchanges)
DB (New York Stock Exchange)
C.2
Currency
Euro.
C.3
Number of shares issued and
fully paid
As of the date of this prospectus, the Company’s share
capital amounts to € 2,763,343,733.76 and is divided into
1,079,431,146 no par value ordinary registered shares, each
carrying full dividend rights as from January 1, 2014. All
shares are fully paid up.
Par value per share or
statement that the shares have
no par value
As no par value ordinary registered shares, each of the
shares of the Company represents a notional value of € 2.56
in the Company’s share capital.
C.4
Rights attached to the
securities
Each share of the Company, including each of the New
Shares, confers one vote at the Bank’s shareholders’
meeting (Hauptversammlung) (also referred to as the
“General Meeting”). There are no restrictions on voting
rights. Each share carries full dividend rights as from
January 1, 2014. In the event the Company is dissolved, the
net assets remaining after discharging the Company’s
liabilities will be distributed among the shareholders pro rata
in accordance with their shareholdings pursuant to Section
271 German Stock Corporation Act (Aktiengesetz).
Shareholders have the right to subscribe for new shares
issued pursuant to any future capital increases (subscription
right), except in the case of contingent capital increases or if
subscription rights are excluded by resolution of the General
Meeting or, if the General Meeting so authorizes, by
resolution of the management board (Vorstand) of the
Company (“Management Board”) with the consent of the
supervisory board (Aufsichtsrat) of the Company
(“Supervisory Board”).
C.5
Restrictions on the free
transferability of the securities
Not applicable. The shares of the Company are freely
transferable.
21
C.6
Admission to trading
Applications for admission of the New Shares to the
regulated market of the Frankfurt Stock Exchange with
simultaneous admission to the sub-segment of the regulated
market with additional post-admission obligations (Prime
Standard) of the Frankfurt Stock Exchange and to the
regulated markets of the stock exchanges of Berlin,
Dusseldorf, Hamburg, Hanover, Munich and Stuttgart are
expected to be filed on June 6, 2014. The admission decision
is expected on or about June 24, 2014. The start of trading
and inclusion of the New Shares in the existing listing on the
German stock exchanges is expected on or about June 25,
2014. The inclusion of the New Shares in the existing listing
on the New York Stock Exchange is expected at the same
time.
C.7
Dividend policy
Deutsche Bank AG paid dividends in previous years and
intends to make payments of dividends to its shareholders in
the future. However, the Company may not pay dividends in
the future at rates it has paid them in previous years. If the
Company is not profitable, it may not pay dividends at all. If
the Bank fails to meet the regulatory capital adequacy
requirements or liquidity requirements under the German
Banking Act, the German Federal Financial Supervisory
Authority (Bundesanstalt für Finanzdienstleistungsaufsicht,
“BaFin”) may suspend or limit the payment of dividends.
Section D – Risks
Investors should carefully consider the following summarized risk factors, in addition to the other
information contained in this Prospectus, before making an investment decision involving shares or
subscription rights of the Company. If one or more of the risks described materializes, this may have a
material adverse impact on the financial condition and results of operations of Deutsche Bank or on the
quoted market price of the shares or subscription rights of Deutsche Bank AG. The quoted market price of
the shares or subscription rights of the Company may decline significantly due to the realization of any of
these individual risks, and investors may lose their invested capital in part or in full. The risks described are
not the only risks that Deutsche Bank faces. Other risks of which the Company is currently unaware or
does not currently consider material may also affect the Company’s or the Deutsche Bank Group’s
business operations and may have a material adverse impact on the business, financial condition and
results of operations of the Company or the Deutsche Bank Group. The order in which the risks are
presented does not have any significance in regard to the likelihood of their occurrence nor the significance
or severity of their economic impact.
D.1
Key risks specific to the issuer
and its industry
• As a global investment bank with a large private client
franchise, Deutsche Bank’s businesses are materially
affected by global macroeconomic and financial market
conditions. Over the last several years, banks, including
Deutsche Bank, have experienced nearly continuous
stress on their business models and prospects.
• A muted global economic recovery and persistently
challenging market and geopolitical conditions continue to
negatively affect Deutsche Bank’s results of operations
and financial condition in some of its businesses, while a
continuing low interest environment and competition in
the financial services industry have compressed margins
in many of Deutsche Bank’s businesses. If these
conditions persist or worsen, Deutsche Bank could
determine that it needs to make changes to its business
model.
• Deutsche Bank has been and may continue to be directly
affected by the European sovereign debt crisis, and it may
be required to take impairments on its exposures to the
sovereign debt of European or other countries. The credit
22
default swaps into which Deutsche Bank has entered to
manage sovereign credit risk may not be available to
offset these losses.
• Regulatory and political actions by European governments
in response to the sovereign debt crisis may not be
sufficient to prevent the crisis from spreading or to prevent
departure of one or more member countries from the
common currency over the long term. The default or
departure of any one or more countries from the euro
could have unpredictable consequences on the financial
system and the greater economy, potentially leading to
declines in business levels, write-downs of assets and
losses across Deutsche Bank’s businesses. Deutsche
Bank’s ability to protect itself against these risks is limited.
• Deutsche Bank has a continuous demand for liquidity to
fund its business activities. It may suffer during periods of
market-wide or firm-specific liquidity constraints, and
liquidity may not be available to it even if its underlying
business remains strong.
• Regulatory reforms enacted and proposed in response to
weaknesses in the financial sector, together with
increased regulatory scrutiny more generally, have created
significant uncertainty for Deutsche Bank and may
adversely affect its business and ability to execute its
strategic plans.
• Regulatory and legislative changes will require Deutsche
Bank to maintain increased capital and may significantly
affect its business model and the competitive
environment. Any perceptions in the market that
Deutsche Bank may be unable to meet its capital
requirements with an adequate buffer, or that it should
maintain capital in excess of the requirements, could
intensify the effect of these factors on Deutsche Bank’s
business and results.
• The increasingly stringent regulatory environment to
which Deutsche Bank is subject, coupled with substantial
outflows in connection with litigation and enforcement
matters, may make it difficult for Deutsche Bank to
maintain its capital ratios at levels above those required by
regulators or expected in the market.
• New rules in the United States, recent legislation in
Germany and proposals in the European Union regarding
the prohibition of proprietary trading or its separation from
the deposit-taking business may materially affect
Deutsche Bank’s business model.
• Proposed European legislation and German legislation
regarding the recovery and resolution of banks and
investment firms may result in regulatory consequences
that could limit Deutsche Bank’s business operations and
lead to higher refinancing costs.
• Other regulatory reforms adopted or proposed in the
wake of the financial crisis – for example, extensive new
regulations governing Deutsche Bank’s derivatives
activities, bank levies or a possible financial transaction tax
– may materially increase Deutsche Bank’s operating
costs and negatively impact its business model.
• Adverse market conditions, historically low prices, volatility
and cautious investor sentiment have affected and may in
23
the future materially and adversely affect Deutsche Bank’s
revenues and profits, particularly in its investment banking,
brokerage and other commission- and fee-based
businesses. As a result, Deutsche Bank has in the past
incurred and may in the future incur significant losses from
its trading and investment activities.
• Since Deutsche Bank published its Strategy 2015+ targets
in 2012, macroeconomic and market conditions as well as
the regulatory environment have been much more
challenging than originally anticipated, and as a result,
Deutsche Bank has updated its aspirations to reflect these
challenging conditions. If Deutsche Bank is unable to
implement its updated strategy successfully, it may be
unable to achieve its financial objectives, or incur losses or
low profitability or erosions of its capital base, and its
share price may be materially and adversely affected.
• Deutsche Bank operates in a highly and increasingly
regulated and litigious environment, potentially exposing it
to liability and other costs, the amounts of which may be
substantial and difficult to estimate, as well as to legal and
regulatory sanctions and reputational harm.
• Deutsche Bank is currently the subject of regulatory and
criminal industry-wide investigations relating to interbank
offered rates, as well as civil actions. Due to a number of
uncertainties, including those related to the high profile of
the matters and other banks’ settlement negotiations, the
eventual outcome of these matters is unpredictable, and
may materially and adversely affect Deutsche Bank’s
results of operations, financial condition and reputation.
• A number of regulatory authorities are currently
investigating Deutsche Bank in connection with
misconduct relating to manipulation of foreign exchange
rates. The extent of Deutsche Bank’s financial exposure
to these matters could be material, and Deutsche Bank’s
reputation may suffer material harm as a result.
• A number of regulatory authorities are currently
investigating or seeking information from Deutsche Bank
in connection with transactions with Monte dei Paschi di
Siena. The extent of Deutsche Bank’s financial exposure
to these matters could be material, and Deutsche Bank’s
reputation may be harmed.
• Regulatory agencies in the United States are investigating
whether Deutsche Bank’s historical processing of certain
U.S. Dollar payment orders for parties from countries
subject to U.S. embargo laws complied with U.S. federal
and state laws. The eventual outcomes of these matters
are unpredictable, and may materially and adversely affect
Deutsche Bank’s results of operations, financial condition
and reputation.
• Deutsche Bank has been subject to contractual claims and
litigation in respect of its U.S. residential mortgage loan
business that may materially and adversely affect its
results or reputation.
• Deutsche Bank’s non-traditional credit businesses
materially add to its traditional banking credit risks.
• Deutsche Bank has incurred losses, and may incur further
losses, as a result of changes in the fair value of its
financial instruments.
24
• Deutsche Bank’s risk management policies, procedures
and methods leave it exposed to unidentified or
unanticipated risks, which could lead to material losses.
• Operational
businesses.
risks
may
disrupt
Deutsche
Bank’s
• Deutsche Bank’s operational systems are subject to an
increasing risk of cyber attacks and other internet crime,
which could result in material losses of client or customer
information, damage Deutsche Bank’s reputation and lead
to regulatory penalties and financial losses.
• The size of Deutsche Bank’s clearing operations exposes
it to a heightened risk of material losses should these
operations fail to function properly.
• Deutsche Bank may have difficulty in identifying and
executing acquisitions, and both making acquisitions and
avoiding them could materially harm Deutsche Bank’s
results of operations and its share price.
• The effects of the takeover of Deutsche Postbank AG
may differ materially from Deutsche Bank’s expectations.
• Deutsche Bank may have difficulties selling non-core
assets at favorable prices or at all and may experience
material losses from these assets and other investments
irrespective of market developments.
• Intense competition, in Deutsche Bank’s home market of
Germany as well as in international markets, could
materially adversely impact its revenues and profitability.
• Transactions with counterparties in countries designated
by the U.S. State Department as state sponsors of
terrorism or persons targeted by U.S. economic sanctions
may lead potential customers and investors to avoid doing
business with Deutsche Bank or investing in its securities,
harm its reputation or result in regulatory action which
could materially and adversely affect its business.
D.3
Key risks specific to the
securities
• Deutsche Bank AG’s share price has been and may
remain volatile.
• The holdings of shareholders who do not participate in the
Offering will be significantly diluted.
• The holdings of the shareholders may be significantly
diluted by future capital increases.
• If the Offering is not consummated or if Deutsche Bank
AG’s share price declines sharply, the subscription rights
will expire or become worthless.
• It is not certain that subscription rights trading will
develop, and the subscription rights may be subject to
greater quoted market price fluctuations than the shares
of Deutsche Bank AG.
• Deutsche Bank AG may not pay dividends in future fiscal
years, be it because it does not generate any balance
sheet profit available for distribution, or for other reasons.
25
Section E – Offer
E.1
Total net proceeds and estimate
of the total expenses of the offer,
including estimated expenses
charged to the investor by the
issuer or the offeror
Assuming that all of the New Shares are subscribed for at the
subscription price of € 22.50 per New Share, the gross
proceeds from the Offering before expenses, commissions
and fees will amount to € 6,746 million. The Company
expects to incur underwriting commissions and other
Offering-related expenses of up to an aggregate maximum of
approximately € 124 million, which includes the underwriting
and management commission of the Underwriters in a
maximum amount of approximately € 119 million. Such
expenses to be borne by the Company will be deducted from
the gross proceeds. Assuming that all New Shares are
subscribed or placed at the subscription price, the Company
would receive net proceeds before tax in the amount of
approximately € 6,622 million from the sale for the New
Shares.
E.2a
Reasons for the offer, use of
proceeds, estimated net amount
of the proceeds
Deutsche Bank intends to use the net proceeds of the
Offering to further strengthen its regulatory capitalization and
also to provide a buffer against future regulatory uncertainty
and challenges ahead not currently foreseen by Deutsche
Bank. Deutsche Bank also plans to use a portion of the
proceeds to launch focused investments in order to take
advantage of opportunities which it perceives to be available
across its business. No specific allocations of the proceeds
have been determined by Deutsche Bank at the date of this
Prospectus.
The net proceeds before tax received by the Company are
expected to total approximately € 6,622 million.
E.3
Terms and conditions of the offer Subject Matter of the Offering
The subject matter of the Offering are 299,841,985 new, no
par value ordinary registered shares of Deutsche Bank AG
(the New Shares), each with a notional value of € 2.56 per
share in the share capital and with full dividend rights as from
January 1, 2014.
The New Shares will result from the capital increase against
cash contributions from authorized capital resolved by the
Management Board on June 5, 2014 and approved by the
Supervisory Board’s Chairman’s Committee, to which such
competence was delegated, on the same date. Exercising the
authorizations pursuant to Section 4 para. 6 and 7 of the
Articles of Association of Deutsche Bank AG (authorized
capital), the Management Board resolved on June 5, 2014,
and the Supervisory Board’s Chairman’s Committee, to which
such competence was delegated, approved on the same
date, to increase the share capital from € 2,763,343,733.76 by
€ 767,595,481.60
to
€ 3,530,939,215.36
by
issuing
299,841,985 New Shares against cash contributions at a
subscription price of € 22.50 per New Share. The
shareholders will be granted indirect subscription rights in this
process. The New Shares will be offered to shareholders at a
subscription ratio of 18 : 5, i.e. 5 New Shares may be acquired
at the subscription price for every 18 existing shares.
Subscription for one single New Share or for integral multiples
of a single share is possible. The subscription rights of the
shareholders are excluded in regard to a fractional amount of
up to 100,000 New Shares. The final number of New Shares
for which the subscription rights have been excluded is based
on the number of own shares as of the evening of June 5,
2014 (record date).
26
Subscription Offer
Based on an underwriting agreement entered into on
May 18, 2014 (the “Underwriting Agreement”), the
Underwriters have agreed, under certain conditions, to
subscribe the New Shares and to offer such shares
(excluding the fractional amount) in public offerings in
Germany, the United Kingdom of Great Britain and Northern
Ireland (“United Kingdom” or “U.K.”) and the United States
of America (“United States” or “U.S.”) to the Company’s
shareholders in connection with an indirect subscription right
at the subscription ratio and at the subscription price per New
Share (the “Subscription Offer”). The New Shares will be
offered to the Company’s shareholders in Canada in a rights
offering pursuant to a Canadian offering memorandum and
only by persons permitted to sell such New Shares in
Canada. Any New Shares remaining unsubscribed in
connection with the Subscription Offer, as well as the
fractional amount excluded from the subscription rights of
the shareholders, will be offered for sale in a public offering
in the United States and in private placements to investors in
Germany and in certain other jurisdictions (excluding Japan).
Under certain
terminated.
circumstances,
the
Offering
may
be
Subscription Price
The subscription price for each subscribed New Share
amounts to € 22.50. The subscription price has to be paid at
the latest on June 24, 2014.
Subscription Ratio
Pursuant to the subscription ratio of 18 : 5, 5 New Shares
may be acquired at the Subscription Price for every
18 existing shares of the Company.
Subscription Period
The subscription period is expected to run from and including
June 6, 2014 to and including June 24, 2014 (the
“Subscription Period”).
Exercise of the Subscription Rights
As of the evening of June 5, 2014, Clearstream Banking AG,
Mergenthalerallee
61,
65760
Eschborn,
Germany
(“Clearstream”), will automatically credit to the depositary
banks the subscription rights relating to the existing shares of
the Company, to the extent they are being held in collective
custody.
The shareholders will be requested through publication of the
Subscription Offer – in the German Federal Gazette
(Bundesanzeiger) expected on June 5, 2014 and in the
Frankfurter Allgemeine Zeitung and the Börsen-Zeitung
expected on June 6, 2014 – to exercise their subscription
rights for the New Shares, during the period from June 6,
2014 to and including June 24, 2014 through their depositary
bank at one of the subscription agents specified below during
ordinary business hours in order to avoid being excluded from
the exercise of their subscription rights. Subscription rights
that are not exercised during the subscription period will
expire and become worthless. No compensation will be
awarded for subscription rights that will not be exercised.
Subscription agents are the German branches of Deutsche
Bank AG.
27
Subscription Rights Trading
In connection with the offering of the New Shares, the
subscription rights or fractions thereof will be traded on the
exchange. The subscription rights (ISIN DE000A11QV10) for
the New Shares will be traded during the period from and
including June 6, 2014 up to and including June 20, 2014 on
the regulated market (XETRA and XETRA Frankfurt Specialist)
of the Frankfurt Stock Exchange. The subscription rights will
also be traded on the New York Stock Exchange. The
Company does not intend to apply for subscription rights
trading on any other stock exchange. The subscription agents
are prepared to act as brokers in the buying and selling of
subscription rights on the stock exchange, if possible. No
compensation will be awarded for any subscription rights not
exercised. Upon expiration of the subscription period, the
unexercised subscription rights will expire and become
worthless. As of June 6, 2014, the existing shares of
Deutsche Bank AG will be quoted “ex-rights” on the
regulated markets of the Frankfurt Stock Exchange and on
the stock exchanges of Berlin, Dusseldorf, Hamburg,
Hanover, Munich and Stuttgart, and the New York Stock
Exchange.
Share Certificates and Delivery of the New Shares
The New Shares will be represented by a global share
certificate deposited with Clearstream Banking AG and with
the sub-agent specified under the global share structure of
Deutsche Bank AG for the United States. According to the
Articles of Association, the shareholders are not entitled to
share certificates, dividend or renewal coupons, provided
these are not required to be granted pursuant to the rules of
a stock exchange by which the shares have been admitted to
trading. The New Shares are vested with the same rights as
all other shares of the Company and are not vested with any
additional rights or benefits.
The New Shares acquired pursuant to the Subscription Offer
are expected to be delivered on or about June 25, 2014, and
once the private placements referred to below are concluded,
the New Shares acquired in private placements are expected
to be delivered on or about June 27, 2014, in each case by
credit to the collective custodial account, unless the
Subscription Period has been extended.
Sale of Unsubscribed Shares/Private Placements
The New Shares remaining unsubscribed in the Subscription
Offer and the share fractional amount excluded from the
subscription right of the shareholders will be offered for sale
in a public offering in the United States and in private
placements to investors in Germany and certain other
jurisdictions (excluding Japan).
E.4
28
Interests material to the offer,
including conflicting interests (if
any)
In connection with the Offering, the Underwriters have a
contractual relationship with the Company. On successful
completion of the Offering, the Underwriters will receive a
commission from the Company. Certain of the Underwriters
and their respective affiliates in a business relationship with
Deutsche Bank have performed, and are likely to perform in
the future, certain advisory or other services for Deutsche
Bank, for which they have received, and are likely to receive
in the future, customary fees and expenses. The Company
has also performed, and is likely to perform in the future,
certain advisory or other services for certain of the
Underwriters or their respective affiliates, for which it has
received, and is likely to receive in the future, customary fees
and expenses. The Company and certain of the Underwriters
and, as the case may be, their affiliates have also acted as
counterparties to other transactions amongst themselves as
well as involving third parties in the area of banking and
finance such as underwriting or lending business or trading or
derivatives transactions. The Company expects that it and
certain of the Underwriters may also in the future have
business relationships as described above. The Company
therefore assumes that the Underwriters have an interest in
the successful completion of the transaction.
Prior to the Offering, Paramount Services Holdings Ltd., an
investment vehicle ultimately beneficially owned and
controlled by His Excellency Sheikh Hamad Bin Jassim Bin
Jabor Al-Thani, acquired 59,931,506 new shares in the
Company that have been issued in a capital increase. In
connection with its investment in the Company, Paramount
Services Holdings Ltd. has undertaken to the Company, also
for the benefit of the Joint Bookrunners, that it will exercise
in connection with the Offering all of the subscription rights
allotted to its shares in the Company and subscribe for all
New Shares attributable to such subscription rights. Given
the aforementioned investment and commitment, it is the
Company’s understanding that Paramount Services Holdings
Ltd. and His Excellency Sheikh Hamad Bin Jassim Bin Jabor
Al-Thani have an interest in the successful completion of the
Offering.
E.5
Name of the entities offering to
sell the securities, lock-up
agreements
Deutsche Bank AG and the Underwriters are offering to sell
the New Shares.
Lock-up Agreement
During the period commencing on May 18, 2014 and ending
six months after the first day of trading of the New Shares on
the Frankfurt Stock Exchange, the stock exchanges of Berlin,
Dusseldorf, Hamburg, Hanover, Munich and Stuttgart and the
New York Stock Exchange, without the prior written consent
of UBS Limited, which consent may not be unreasonably
withheld or delayed, the Company will not, to the extent
permitted by German corporate law (im Rahmen des
aktienrechtlich Zulässigen):
(i)
exercise an authorization pursuant to its Articles of
Association to increase its capital;
(ii)
except for the proposals contained in the invitation for
the annual general meeting 2014, submit a proposal for a
capital increase or the issuance of financial instruments
convertible into shares of the Company or with option
rights for shares of the Company to any meeting of the
shareholders for resolution (except for authorizations
pursuant to Section 202 or Section 221 (2) of the
German Stock Corporation Act and the creation of a
related conditional capital);
(iii) offer, pledge, allot, issue (unless being required by
applicable law), sell, contract to sell, sell any option to
purchase or contract to purchase, purchase any option to
sell, grant any option, right or warrant to purchase, or
otherwise transfer or dispose of, directly or indirectly,
any shares in its capital or any securities convertible into
or exercisable or exchangeable for shares in its capital or
29
enter into any swap or other arrangement that transfers
to a third party, in whole or in part, the economic risk of
ownership of shares in its capital, whether any such
transaction described above is to be settled by delivery
of shares in its capital or such other securities, in cash or
otherwise.
The foregoing restrictions will not apply to (i) the New Shares
to be sold under the Underwriting Agreement, (ii) contingent
capital instruments (including the CRR/CRD 4 Additional
Tier 1 (“AT1”) securities) issued or to be issued by the
Company (aa) mandatorily or voluntarily convertible into
shares of the Company, or (bb) being combined with any
option, right or warrant to purchase any existing share or new
share, or (cc) granting any participation rights (Genussrechte),
or (dd) other instruments related to or combining any such
instruments described under (aa) – (cc), in each case
irrespective of whether or not subscription rights will be
granted to the shareholders of the Company, (iii) for the
purpose of issuing or otherwise distributing or allocating
shares of the Company or options for shares of the Company
or other instruments related to shares of the Company to
directors (including members of the management board or
supervisory board) or employees of the Company or any of its
subsidiaries under a customary directors’ (including members
of the management board or supervisory board) and/or
employees’ stock option, share participation or other
employee incentive plan or otherwise related to equity
compensation of directors (including members of the
management board or supervisory board) or employees of
the Company, (iv) sales of treasury shares (or derivative
transactions related thereto) carried out in a manner
consistent with the Company’s normal treasury activity, (v)
hedging, market making and brokerage activities in the
ordinary course of the Company’s or any of its affiliates
trading activities, and (vi) transactions by the Company or any
of its affiliates in execution of customer orders.
For the avoidance of doubt, the foregoing restrictions do not
apply to the issuance of new shares of the Company to
Paramount Services Holdings Ltd., which occurred prior to
the Offering. There is no lock-up agreement between
Paramount Services Holdings Ltd. and the Company in
connection with the Offering.
E.6
30
Amount and percentage of
The book value of the shareholders’ equity of Deutsche Bank
immediate dilution resulting from recorded in the condensed consolidated balance sheet
the offer
prepared in accordance with IFRS as of March 31, 2014 was
€ 55,753 million and therefore € 54.69 per share of the
Company, calculated on the basis of the number of
1,019,499,640 issued shares of the Company as of March 31,
2014. On an adjusted basis, reflecting the issuance of
59,931,506 new shares at a placement price of € 29.20 per
share to Paramount Services Holdings Ltd. prior to the
Offering, the book value of the total shareholders’ equity of
Deutsche Bank would have been € 57,491 million
corresponding to € 53.26 per share of the Company (based
on the 1,079,431,146 shares of the Company after the preplacement of new shares to Paramount Services Holdings
Ltd. and taking into account the deduction of expenses,
commissions and fees in connection with the pre-placement
and the issuance of AT1 Notes, and the premia from the
issuance of the AT1 Notes, the latter of which are also
reflected in additional paid-in capital).
Based on the foregoing, following the implementation of the
capital
increase
from
€ 2,763,343,733.76
by
€ 767,595,481.60
to € 3,530,939,215.36
by issuing
299,841,985 New Shares against cash contributions in
connection with this Offering, which is expected to be
registered in the Commercial Register of the Company on or
about June 23, 2014, and at a subscription or, as the case
may be, placement price of € 22.50 per New Share, and
following the deduction of the estimated expenses,
commissions and fees of the Offering in the maximum
amount of € 113 million net of tax, the book value of the
shareholders’ equity of the Company recorded in the balance
sheet under IFRS as of March 31, 2014 would have been
€ 64,124 million or € 46.49 per share (calculated on the basis
of the number of 1,379,273,131 shares of the Company
issued after the implementation of the capital increase in
connection with the Offering).
This corresponds to a dilution in net equity of the Company
by € 6.77 or 12.7 % per share for the previous shareholders.
For purchasers of New Shares, this results in an indirect
accretion of € 23.99 or 106.6 % per share, as the adjusted
shareholders’ equity of the Company per share exceeds the
assumed subscription or, as the case may be, placement
price of € 22.50 per New Share by this amount or this
percentage.
E.7
Amount and percentage of
immediate dilution resulting in
the event that equity holders do
not exercise their subscription
rights
If a shareholder does not exercise any of its subscription
rights, such shareholder’s percentage ownership in the
Company’s share capital and its voting rights will be diluted
by 21.7 %. This would result in a capital dilution for a
shareholder not exercising any of its subscription rights of
€ 6.77 per share, not taking into account the economic value
of such subscription rights.
Estimated expenses charged to
the investor
Not applicable. None of the expenses incurred by the
Company or the Underwriters will be charged to the
investors, however investors will themselves be required to
bear the fees charged by their custodian bank for the
purchase and holding of securities.
31
GERMAN TRANSLATION OF THE SUMMARY – ZUSAMMENFASSUNG
Die Zusammenfassung spiegelt die Vorgaben der Verordnung (EG) Nr. 809/2004 der Kommission vom
29. April 2004 in der aktuellen Fassung wider (die „Prospektverordnung“), einschließlich der Vorgaben in
Annex XXII der Prospektverordnung („Annex XXII“). Gemäß Annex XXII müssen Zusammenfassungen von
Prospekten aus Offenlegungserfordernissen bestehen, die als „Elemente” bezeichnet werden. Diese
Elemente sind in den Abschnitten A – E (A.1 – E.7) aufgezählt. Diese Zusammenfassung enthält alle
Elemente, die eine Zusammenfassung für Wertpapiere dieses Typs und für diesen Emittenten enthalten
muss. Da manche Elemente vorliegend nicht einschlägig sind, können sich entsprechende Lücken in der
durchnummerierten Abfolge der Elemente ergeben. Obwohl ein Element in einer Zusammenfassung für
Wertpapiere dieses Typs und für diesen Emittenten enthalten sein müsste, ist es möglich, dass zu diesem
Element keine relevanten Angaben gemacht werden können. In einem solchen Fall beinhaltet die
Zusammenfassung eine kurze Beschreibung des Elements mit dem Hinweis „entfällt”.
Abschnitt A – Einleitung und Warnhinweis
A.1
Warnhinweise
Diese Zusammenfassung ist als Einführung zu diesem
Wertpapierprospekt (der „Prospekt“) zu verstehen. Anleger
sollten wegen der wesentlich detaillierteren Informationen in
anderen Teilen des Prospekts in jedem Fall den gesamten
Prospekt aufmerksam lesen und eine Anlageentscheidung
betreffend Aktien oder Bezugsrechte der Deutsche Bank
Aktiengesellschaft auf die Prüfung des gesamten Prospekts
stützen.
Die Deutsche Bank Aktiengesellschaft, Frankfurt am Main
(die „Deutsche Bank AG“, die „Bank“ oder die
„Gesellschaft“ und zusammen mit ihren konsolidierten
Tochtergesellschaften der „Deutsche Bank-Konzern“, die
„Deutsche Bank“ oder der „Konzern“), UBS Limited, Banco
Santander, S.A., Barclays Bank PLC, COMMERZBANK
Aktiengesellschaft, Goldman Sachs International, J.P. Morgan
Securities plc, ABN AMRO Bank N.V., Banca IMI S.p.A.,
Banco Bilbao Vizcaya Argentaria, S.A., Citigroup Global
Markets Limited, ING Bank N.V., Mediobanca - Banca di
Credito Finanziario S.p.A., SOCIETE GENERALE und
UniCredit Bank AG, (zusammen die „Joint Bookrunners“)
sowie Bankhaus Lampe KG, CREDIT AGRICOLE
CORPORATE AND INVESTMENT BANK, DZ BANK AG
Deutsche
Zentral-Genossenschaftsbank,
Jefferies
International Limited, Mizuho International plc, NATIXIS,
Nomura International plc, Raiffeisen Centrobank AG, RBC
Europe Limited, Standard Chartered Bank und Wells Fargo
Securities International Limited, (zusammen die „Co-Lead
Managers” und zusammen mit den Joint Bookrunners die
„Konsortialbanken”) übernehmen gemäß § 5 Abs. 2b Nr. 4
Wertpapierprospektgesetz (WpPG) die Verantwortung für die
in dieser Zusammenfassung und ihrer deutschen
Übersetzung enthaltenen Angaben. Diejenigen Personen, die
die Verantwortung für die Zusammenfassung einschließlich
ihrer Übersetzung übernommen haben, oder von denen
deren Erlass ausgeht, können für die in dieser
Zusammenfassung und ihrer deutschen Übersetzung
enthaltenen Angaben haftbar gemacht werden, jedoch nur
für den Fall, dass die Zusammenfassung irreführend,
unrichtig oder widersprüchlich ist, wenn sie zusammen mit
anderen Teilen des Prospekts gelesen wird, oder sie, wenn
sie zusammen mit den anderen Teilen des Prospekts gelesen
wird, nicht alle erforderlichen Schlüsselinformationen
vermittelt. Für den Fall, dass vor einem Gericht Ansprüche
auf Grund der in dem Prospekt enthaltenen Informationen
geltend gemacht werden, könnte der als Kläger auftretende
Anleger in Anwendung einzelstaatlicher Rechtsvorschriften
der Staaten des Europäischen Wirtschaftsraums die Kosten
für die Übersetzung des Prospekts vor Prozessbeginn zu
tragen haben, bevor das Verfahren eingeleitet werden kann.
32
A.2
Verwendung des Prospekts
durch Finanzintermediäre
Entfällt. Eine Zustimmung zur Verwendung des Prospekts für
eine spätere Weiterveräußerung oder endgültige Platzierung
von Wertpapieren durch Finanzintermediäre ist nicht erteilt
worden.
Abschnitt B – Emittent
B.1
Juristische und kommerzielle
Bezeichnung
B.2
Sitz, Rechtsform, geltendes
Recht, Land der Gründung
Der Hauptsitz der Gesellschaft ist in Frankfurt am Main,
Taunusanlage 12, 60325 Frankfurt am Main, Bundesrepublik
Deutschland („Deutschland“). Die Gesellschaft ist im
Handelsregister beim Amtsgericht Frankfurt am Main unter
der Registernummer HRB 30000 eingetragen. Die Deutsche
Bank AG ist ein Kreditinstitut und eine Aktiengesellschaft
nach deutschem Recht.
B.3
Derzeitige Geschäfts- und
Haupttätigkeit des Emittenten
sowie die Hauptmärkte, auf
denen der Emittent vertreten ist
Die Deutsche Bank ist mit einer Bilanzsumme von
1.637 Mrd € zum 31. März 2014 nach eigener Ansicht die
größte Bank Deutschlands und gehört nach ihrer
Einschätzung zu den führenden Finanzdienstleistern in
Europa und weltweit.
Die Deutsche Bank ist derzeit in fünf Unternehmensbereiche
gegliedert:
Zur Organisation gehören auch Infrastrukturfunktionen.
Darüber hinaus verfügt die Deutsche Bank über eine Regional
Management-Funktion,
die
weltweit
regionale
Zuständigkeiten abdeckt.
Die Deutsche Bank unterhält Geschäftsbeziehungen mit
bestehenden und neuen Kunden in nahezu jedem Land der
Welt. Diese Geschäftsaktivitäten werden abgewickelt über:
• Tochtergesellschaften und Filialen in zahlreichen Ländern,
• Repräsentanzen in vielen anderen Ländern und
• einen oder mehrere Repräsentanten zur Betreuung
unserer Kunden in einer Reihe von weiteren Ländern.
Unternehmensbereich Corporate Banking & Securities
CB&S besteht aus den Geschäftsbereichen Markets und
Corporate Finance. Zu Markets gehören die Vertriebs-,
Handels- und Strukturierungsaktivitäten in einem breiten
Spektrum von Finanzprodukten wie Anleihen, Aktien und
aktienbezogene Produkte, börsennotierte und außerbörsliche
Derivate,
Devisen,
Geldmarktinstrumente,
verbriefte
Forderungen sowie Rohstoffe. Corporate Finance ist für
Fusionen und Übernahmen sowie die Emission von Anleihen
und Aktien zuständig. Regionale und branchenfokussierte
Teams sorgen dafür, dass den Kunden alle angebotenen
Finanzierungsprodukte und Serviceleistungen zur Verfügung
stehen.
33
Unternehmensbereich Global Transaction Banking
Der
Unternehmensbereich
GTB
ist
weltweit
für
Unternehmen und Finanzdienstleister tätig. Seine Produkte
und Leistungen dienen der Abwicklung inländischer und
grenzüberschreitender Zahlungen sowie der Risikosteuerung
und
Finanzierung
internationaler
Handelsgeschäfte.
Außerdem stellt GTB Leistungen im Treuhand- und
Vermittlungsgeschäft sowie in der Wertpapierverwahrung
und -verwaltung bereit.
Unternehmensbereich Deutsche Asset & Wealth Management
DeAWM unterstützt private und institutionelle Kunden in aller
Welt dabei, ihr Vermögen zu sichern und zu mehren. Der
Unternehmensbereich bietet traditionelle und alternative
Investmentprodukte und -lösungen in allen wichtigen
Anlageklassen
an.
DeAWM
steht
zudem
für
maßgeschneidertes Wealth Management und eine
ganzheitliche Betreuung wohlhabender Privatanleger und
großer Familienvermögen (Family Offices). Kunden von
DeAWM haben Zugang zum gesamten Fonds- und WealthManagement-Angebot der Deutschen Bank sowie von
Drittanbietern mit einer umfassenden Auswahl erstklassiger
Produkte und Lösungen.
Unternehmensbereich Private & Business Clients
PBC stellt in Deutschland und international Bank- und
Finanzdienstleistungen für Privatkunden, Selbstständige
sowie kleine und mittlere Unternehmen zur Verfügung. Das
Produktangebot von PBC umfasst Kontoführung und
Zahlungsverkehr, Vermögensanlage- und Vorsorgeberatung,
Wertpapiere, Einlagen und Kredite. PBC ist eine führende
Privatbank im Heimatmarkt Deutschland mit einem
Vertriebsnetz in Italien, Spanien, Belgien, Portugal, Polen und
Indien. In China kooperiert PBC mit der Hua Xia Bank, an der
die Deutsche Bank als zweitgrößter Aktionär mit 19,99 %
beteiligt ist.
Unternehmensbereich Non-Core-Operations Unit
Die Ende 2012 aufgebaute NCOU hat die Aufgabe, Risiken
im Zusammenhang mit kapitalintensiven Vermögenswerten,
die nicht im Einklang mit der neuen strategischen
Ausrichtung der Bank stehen, abzubauen und somit auch
Risiken und Kapitalbindung zu reduzieren. Das ermöglicht es
der Unternehmensführung, sich auf ihr strategisches und
operatives Kerngeschäft zu konzentrieren. Zudem erhöht dies
die Transparenz der externen Berichterstattung.
Strategie
Die von der Deutschen Bank im September 2012 vorgestellte
Strategie
2015+
zielt
darauf
ab,
die
aktuellen
Herausforderungen zu bewältigen und die Deutsche Bank in
einem veränderten Umfeld erfolgreich zu positionieren. Die
Umsetzung der Strategie 2015+ ermöglicht es der
Deutschen Bank auch, Chancen wahrzunehmen, die aus
langfristigen weltweiten Trends resultieren und ihre Vision zu
verwirklichen, die führende kundenorientierte globale
Universalbank zu werden.
Mit der Strategie 2015+ bekräftigt die Deutsche Bank ihr
Bekenntnis zum Universalbankmodell, das Bekenntnis zum
Heimatmarkt Deutschland sowie zur globalen Präsenz. Die
Strategie betont die Notwendigkeit, noch kundenorientierter
zu werden, die Effizienz und die operative Leistungsfähigkeit
zu steigern, die Kapitalbasis zu stärken und den kulturellen
34
Wandel voranzutreiben. Für die Strategie 2015+ der
Deutschen Bank sind fünf entscheidende Hebel von
besonderer Relevanz:
• Kunden. Die Deutsche Bank betreut klar definierte
Kundengruppen und Regionen mit dem Ziel, für diese
Mehrwert zu schaffen. Das Augenmerk der Deutschen
Bank richtet sich besonders auf Wachstum im
Heimatmarkt Deutschland, im asiatisch-pazifischen Raum
und in Amerika. Seit der Bekanntgabe der Strategie 2015+
hat sich die Deutsche Bank noch stärker auf ihre Kunden
ausgerichtet. Dazu gehört der Aufbau einer speziellen
Mittelstandsplattform in Deutschland. Zudem hat die
Deutsche Bank ihre Kundenbetreuung vor Ort intensiviert
und die bereichsübergreifende Zusammenarbeit in der
Bank weiter verbessert.
• Kompetenzen. Die Strategie beruht auch auf der Stärke
des Kerngeschäfts der Deutschen Bank. Die Deutsche
Bank ist davon überzeugt, dass ihre vier für das
Kerngeschäft verantwortlichen Unternehmensbereiche –
Corporate Banking & Securities, Global Transaction
Banking, Deutsche Asset & Wealth Management und
Private & Business Clients – sehr gut positioniert sind, um
den immer anspruchsvolleren globalen Bedürfnissen der
Kunden gerecht zu werden und den Ertragsmix
auszubalancieren.
• Kapital. Die Deutsche Bank ist entschlossen, ihre Kapitalund Verschuldungsquoten weiter zu verbessern. Um dies
zu erreichen, setzt die Deutsche Bank zahlreiche
Maßnahmen zur Stärkung ihrer Kapitalbasis und
Herabsetzung ihrer risikogewichteten Aktiva und Leverage
Exposure um. Die Deutsche Bank hat sich das Ziel
gesetzt, gemäß CRR/CRD 4 (Vollumsetzung) eine Tier-1Kernkapitalquote
von
mehr
als
10 %
unter
Berücksichtigung der Nettoemissionserlöse aus diesem
Angebot und dem Erwerb von 59.931.506 neuen Aktien
der Gesellschaft durch die Paramount Services Holdings
Ltd., einer Investmentgesellschaft im wirtschaftlichen
Eigentum und unter Kontrolle von Scheich Hamad Bin
Jassim Bin Jabor Al-Thani, zu erreichen. Die Deutsche
Bank hat die Common Equity Tier-1-Kapitalquote gemäß
CRR/CRD 4 (Vollumsetzung) von unter 6 % im Juni 2012
(geschätzt auf Pro-forma-Basis) bereits auf 9,5 % Ende
März 2014 steigern können. Ihre Bilanz hat die Deutsche
Bank im gleichen Zeitraum signifikant verkürzt. Der
Unternehmensbereich Non-Core Operations Unit, der den
Abbau von nicht zum Kerngeschäft gehörenden
Vermögenswerten steuert, hat dazu einen wesentlichen
Beitrag geleistet.
• Kosten. Die Deutsche Bank strebt an, ihre langfristige
Wettbewerbsfähigkeit zu sichern, indem sie mithilfe des
Operational-Excellence(OpEx)-Programms eine moderne
und effiziente Infrastruktur aufbaut. Das Programm zielt
darauf ab, die Qualität der Dienstleistungen zu erhöhen,
die Flexibilität der Bank zu steigern, die Kontrolle zu
verstärken und eine Kultur der Kosteneffizienz zu
etablieren. Durch Investitionen von 4 Mrd € sollen bis
zum Jahresende 2015 insgesamt jährliche Kosten in Höhe
von 4,5 Mrd € eingespart werden. Zum Jahresende 2013
addierten sich die kumulierten Einsparungen bereits auf
2,1 Mrd €. Das wurde nach Auffassung der Deutschen
35
Bank erreicht, indem die Deutsche Bank effizienter
geworden ist, intelligenter eingekauft, ihre Technologie
modernisiert und ihre Strukturen verschlankt und die
Belastbarkeit ihrer Plattform verbessert hat.
• Kultur. Die Deutsche Bank sieht einen tiefgreifenden
kulturellen Wandel in der Finanzdienstleistungsbranche als
unerlässlich an und möchte dabei eine Vorreiterrolle
einnehmen. Die Deutsche Bank verpflichtet sich zu einer
Kultur, die Risiken und Erträge in ein ausgewogenes
Verhältnis bringt, talentierte Mitarbeiter gewinnt und
fördert, Teamarbeit und Kollegialität belohnt und auf die
Belange der Gesellschaft eingeht. Im Jahr 2013 hat sie
das Fundament für den Kulturwandel gelegt. Die
Deutsche Bank hat neue Werte und die zugrunde
liegenden
Überzeugungen
definiert,
ihre
Kontrollmechanismen gestärkt, ihre Vergütungsmodelle
reformiert und ein Programm für den nachhaltigen Wandel
etabliert.
Mit der Strategie 2015+ will die Deutsche Bank ihre globale
Plattform und die führende Position im Heimatmarkt
ausbauen,
die
integrierte
Leistungsfähigkeit
ihres
Universalbankmodells nutzen, das Kapital stärken, operative
und Kosteneffizienz erlangen und eine Vorreiterrolle beim
Kulturwandel der Bankenbranche einnehmen.
Am 18. Mai 2014 bekräftigte die Deutsche Bank ihr
Bekenntnis zur Strategie 2015+ und veröffentlichte
aktualisierte finanzielle Ziele sowie weitere Details ihrer
Wachstumsstrategie. Sie bekräftigte auch ihr Ziel, die
führende kundenorientierte globale Universalbank zu sein. Im
Zusammenhang mit diesen Zielen kündigte die Deutsche
Bank ein Paket von Maßnahmen an, um ihr Kapital zu
stärken, ihre Wettbewerbsposition zu verbessern und in ihr
Kundengeschäft zu investieren.
B.4a
36
Wichtigste jüngste Trends, die
sich auf den Emittenten und die
Branchen, in denen er tätig ist,
auswirken
Wettbewerb
Auch wenn das Eingreifen der Europäischen Zentralbank
(EZB) in die Finanzmärkte ein Wiederkehren der Euro-Krise
abgewendet
zu
haben
scheint
und
sich
das
makroökonomische Marktumfeld in der Eurozone im Jahr
2013 etwas verbessert hat, bleibt das Wirtschaftswachstum
in Europa schwach und viele europäische Wirtschaften sehen
sich weiterhin strukturellen Herausforderungen gegenüber,
da die Arbeitslosigkeit und strukturellen Schulden auf einem
hohen Niveau bleiben. In den Vereinigten Staaten sind
wiederholt im Hinblick auf den politischen Stillstand bei der
Finanzpolitik und mögliche Änderungen des Programms der
US Federal Reserve zum umfangreichen Erwerb langfristiger
Finanzanlagen zur Förderung der Konjunktur (als „quantitative
Lockerung“ bezeichnet) Unsicherheiten aufgetreten und
haben die noch zögerliche und fragile Belebung der
Konjunktur gefährdet. In den Schwellenländern herrschte
2013 in Anbetracht der Befürchtung, dass die Höhe des
Zuflusses der Auslandsinvestitionen mit der Verringerung der
liquiditätsfördernden Maßnahmen in den USA und Europa
erheblich zurückgehen würde, Unbeständigkeit. Vor diesem
Hintergrund und diesen Unsicherheiten hat die Deutsche
Bank in einer Reihe ihrer Geschäftsfelder eine reduzierte
Marktaktivität ihrer Kunden beobachtet, wobei ihr Credit
Flow-Geschäft insbesondere durch die mögliche Reduzierung
der quantitativen Lockerung betroffen war, obwohl das
ausgesprochen niedrige Zinsniveau auch in verschiedenen
traditionellen Bankbereichen die Margen gedrückt hat. Diese
Herausforderungen wurden dadurch verstärkt, dass der
Deutschen Bank nach wie vor die anhaltende Verschärfung
der
regulatorischen
Rahmenbedingungen
sowie
umfangreiche Rechtsstreitigkeiten und Untersuchungen zu
schaffen machen, die zu Reputationsproblemen geführt und
weiteren Druck auf die Ertragslage ausgeübt haben.
In diesem Umfeld ist das Bankgewerbe (einschließlich der
Deutschen Bank in allen Geschäftsbereichen) starkem
Wettbewerb ausgesetzt, wobei die Branche aus diesem
Grund nach und nach eine Konzentration erfährt. Die
Stärkung der Kapitalausstattung, Verbesserung der Effizienz
und Auflösung von Altlasten haben bei den meisten
Wettbewerbern der Deutschen Bank bei der strategischen
Planung oberste Priorität. Dies hat viele von ihnen zu einer
Neuausrichtung ihrer Geschäftsmodelle veranlasst um in der
Lage zu sein, attraktive Renditen zu erwirtschaften. Einige
Banken
haben
Maßnahmen
angekündigt,
ihre
Geschäftstätigkeit in bestimmten Bereichen abzubauen, dies
gilt insbesondere für den Kapitalmarktbereich, der durch die
aufsichtsrechtlichen Änderungen besonders betroffen war.
Die Deutsche Bank ist davon überzeugt, dass die globalen
Trends wie die wachsende wirtschaftliche Bedeutung der
Schwellenländer, die alternde Bevölkerung in den meisten
Industrieländern und der technologische Fortschritt
Möglichkeiten für ein künftiges Wachstum bieten werden.
Die Banken – auch die Deutsche Bank – sehen dies als Teil
ihrer Geschäftsstrategien und Wachstumspläne an.
Zu den Wettbewerbern der Deutschen Bank zählen andere
Universalbanken, Handelsbanken, Sparkassen, öffentlichrechtliche Banken, Makler und Händler, Investmentbanken,
Vermögensverwalter,
Privatbanken,
Anlageberater,
Dienstleister für den Zahlungsverkehr und Versicherungen.
Da einige Technologieunternehmen zunehmend Interesse an
Bankdienstleistungen zeigen, stellen sie in Zukunft eine
mögliche neue Gruppe von Wettbewerbern dar. Die
Deutsche Bank steht mit einigen ihrer Wettbewerber im
globalen Wettbewerb und mit einigen anderen im regionalen
Wettbewerb bzw. im Wettbewerb im Hinblick auf ein
bestimmtes Produkt oder eine Nische. Die Deutsche Bank
konkurriert auf der Grundlage verschiedener Faktoren wie der
Qualität der Kundenbeziehungen, Durchführung von
Transaktionen, ihren Produkten und Dienstleistungen,
Innovation, Ansehen und Preis.
In Deutschland, dem Heimatmarkt der Deutschen Bank, ist
der Privatkundenmarkt nach wie vor fragmentiert und das
Wettbewerbsumfeld ist durch das Drei-Säulen-System
bestehend aus Privatbanken, öffentlichen Banken und
Genossenschaftsbanken gekennzeichnet. Nach einigen
Konsolidierungen, insbesondere unter Landesbanken und
Privatbanken, hat sich der Wettbewerb in den vergangenen
Jahren verstärkt. Die Übernahme der Deutschen Postbank
AG
durch
die
Deutsche
Bank
hat
auch
die
Wettbewerbslandschaft in Deutschland verändert und die
Konzentration des Bankensektors weiter erhöht.
Regulatorisches Umfeld
Die Umsetzung globaler regulatorischer Reformen nach der
Finanzkrise ist noch nicht abgeschlossen. Obwohl mehrere
größere Länder bei der Fertigstellung neuer Gesetze und
Regelungen zur Umsetzung weltweit vereinbarter Reformen
bereits bedeutende Fortschritte gemacht haben, müssen an
37
vielen Stellen detaillierte Regelungen noch abgeschlossen
werden. Darüber hinaus liegen noch zahlreiche Vorschläge
vor, auf die es sich zu einigen gilt, und es werden auch
immer wieder neue Vorschläge mit möglicherweise
bedeutenden Auswirkungen unterbreitet.
Bereits eingeführte Regelungen
Seit dem vergangenen Jahr wurden in maßgeblichen Ländern
mehrere bedeutende G20-Verpflichtungen abgeschlossen
und umgesetzt. Andere Initiativen sind ausreichend weit
ausgereift, um in die Geschäftsstrategie und den
Geschäftsbetrieb der Deutschen Bank aufgenommen werden
zu können. Die Gesamtauswirkungen dieser Reformen
werden in hohem Maße von den genauen Regelungen
abhängen und von der Interaktion zwischen den
unterschiedlichen Regelungswerken in den verschiedenen
Ländern – z.B. inwieweit diese doppelte oder gegensätzliche
Anforderungen auferlegen. Zu den Bereichen mit Potential
für bedeutende Auswirkungen und Folgen für den
Wettbewerb zählen:
• Das Basel 3-Regelwerk, das nun von der EU durch das
CRR/CRD 4-Reformpaket („CRR/CRD 4“) umgesetzt
wurde und aus der Verordnung (EU) Nr. 575/2013 über
Aufsichtsanforderungen
an
Kreditinstitute
und
Wertpapierfirmen (Capital Requirements Regulation,
„CRR“) und der Richtlinie 2013/36/EU über den Zugang
zur Tätigkeit von Kreditinstituten und die Beaufsichtigung
von Kreditinstituten und Wertpapierfirmen (Capital
Requirements Directive 4, „CRD 4“) besteht. Die
Mehrzahl der Bestimmungen trat am 1. Januar 2014 in
Kraft. CRR/CRD 4 betrifft alle Geschäftsfelder der
Deutschen Bank, unter anderem Berichterstattung und
Offenlegung; Basel 3 wurde auch in den USA umgesetzt
und gilt für bestimmte Aspekte des U.S.-Geschäfts der
Deutschen Bank ab dem 1. Januar 2015 und für das
gesamte U.S.-Geschäft ab dem 1. Juli 2016.
• Gemäß CRD 4 unterliegen Banken in der EU,
einschließlich der Deutschen Bank, neuen Regelungen im
Hinblick auf die Vergütung für Mitarbeiter, deren
berufliche Tätigkeit sich wesentlich auf das Risikoprofil
eines Instituts auswirkt, einschließlich im März 2014
erlassenen technischen Standards und Leitlinien, die die
Umsetzung dieser Regelungen präzisieren.
• Strukturelle Reformen, die die Trennung bestimmter
Tätigkeiten wie beispielsweise von Eigenhandel und
Einlagengeschäft erfordern, können auch Auswirkungen
auf die Wettbewerbsfähigkeit haben. Die Deutsche Bank
ist von Section 619 des U.S.-amerikanischen Dodd-Frank
Wall Street Reform and Consumer Protection Act – auch
als „Volcker Rule“ bezeichnet – betroffen, der bis Juli
2015 umgesetzt werden muss, sowie dem deutschen
Gesetz zur Abschirmung von Risiken und zur Planung der
Sanierung und Abwicklung von Kreditinstituten und
Finanzgruppen (RiskAbschG), das vorschreibt, dass
Banken, die bestimmte Schwellen überschreiten (wie die
Deutsche Bank), ab dem 1. Juni 2015 mit einer
Übergangsfrist von zwölf Monaten verpflichtet sind,
Eigenhandel und bestimmte andere Tätigkeiten vom
Einlagengeschäft zu trennen.
• Einführung von Kapital-, Liquiditäts- und anderen
aufsichtsrechtlichen Anforderungen für Finanzinstitute, die
auf nationaler Ebene als systemrelevant angesehen
38
werden, wie beispielsweise die Final Rules des
U.S.-Federal
Reserve
Board
im
Hinblick
auf
U.S.-amerikanische Anforderungen in Bezug auf Kapital,
Stresstests,
Liquidität
und
andere
erhöhte
aufsichtsrechtliche Anforderungen für das U.S.-Geschäft
ausländischer Banken.
• Aufsichtsrechtliche Anforderungen, nach denen für
OTC- und standardisierte Derivate ein zentrales Clearing
stattfindet, sie an ein Transaktionsregister gemeldet
werden und auf einer offiziellen Plattform gehandelt
werden; in den USA nach Maßgabe des Dodd-Frank Act
und – in Bezug auf Clearing und Meldungen – in der EU
gemäß der Verordnung über OTC Derivative, Zentrale
Gegenparteien und Transaktionsregister (EMIR). Die
Planung der Deutschen Bank ist diesbezüglich
fortgeschritten, die Auswirkungen werden jedoch von den
endgültigen umzusetzenden Regelungen abhängen, dem
Zusammenspiel dieser Regelungen mit den Regelungen
anderer
Länder
und
den
Ergebnissen
grenzüberschreitender Beratungen über OTC-Derivate.
• Die Umsetzung der endgültigen Mindeststandards des
Baseler Ausschusses für Bankenaufsicht (BCBS) und der
Internationalen
Organisation
der
Wertpapieraufsichtsbehörden
(IOSCO)
für
Einschussanforderungen für nicht zentral abgewickelte
Derivate, für die in der EU (EMIR) und in den USA
(Dodd-Frank Act) entsprechende Regelungen vorliegen,
bei denen jedoch die Auswirkungen zu einem großen Teil
davon abhängen, wie genau diese Anforderungen im
Zuge der weiteren Implementierung der Bestimmungen
umgesetzt werden.
• Die Einführung neuer Abwicklungsmechanismen für die
Aufsichtsbehörden zur Sanierung von notleidenden
Finanzinstituten und zur Abschreibung (write-down) von
Verbindlichkeiten
gegenüber
Gesellschaftern
und
Gläubigern gemäß dem Dodd-Frank Act in den USA und
der Richtlinie zur Sanierung und Abwicklung von
Finanzinstituten in der EU. Die Planung der Deutschen
Bank zur Sanierung und Abwicklung ist weit
fortgeschritten und unterliegt der Prüfung durch die
zuständigen Aufsichtsbehörden. Die Deutsche Bank
verfügt über einen großen Pool an Instrumenten, die
notfalls in Eigenkapital umgewandelt oder abgeschrieben
werden können. Die fehlende grenzüberschreitende
Koordination
der
Abwicklungspläne
und
deren
Anerkennung bleibt jedoch ein wesentliches Risiko.
• Aktualisierte EU-Regelungen zur Marktstruktur, Vor- und
Nachhandelstransparenz im Fixed Income, Currency und
Commodities-Geschäft
(FICC),
Anlegerschutz,
Marktmissbrauch und Sanktionen gemäß der Richtlinie
über Märkte für Finanzinstrumente (MiFID) und die
Marktmissbrauchsrichtlinie (MAD). Die MiFID führt auch
die weltweit vereinbarte Handelspflicht (trading mandate)
für OTC-Derivate in der EU ein. Die neuen Regelungen
könnten eine erhebliche Auswirkung auf die Art und
Weise haben, in der die Deutsche Bank mit ihren Kunden
handelt, auf ihre Bereitschaft, Risikokapital einzusetzen
und auf die Art des Vertriebs ihrer Produkte.
• Direkte aufsichtsrechtliche Überwachung der Deutschen
Bank durch die Europäische Zentralbank (EZB) (gemäß dem
einheitlichen Bankenaufsichtsmechanismus) ab dem
39
4. November 2014; derzeit führt die EZB eine umfassende
Bewertung aller Banken durch, die von der EZB in Zukunft
direkt überwacht werden, darunter auch die Deutsche Bank.
• Maßnahmen zur weiteren Integration des europäischen
Binnenmarkts für Finanzdienstleistungen und der
Europäischen Bankenunion, darunter der einheitliche
Abwicklungsmechanismus
in
den
teilnehmenden
Mitgliedstaaten sowie harmonisierte Regelungen für
Einlagensicherungssysteme, Zahlungen und Bankkonten
Die Auswirkungen dieser endgültigen und nahezu
endgültigen Reformen sind aufgrund ihrer möglichen
Wechselwirkung mit Vorschlägen, die noch verhandelt
werden, sowie sich neu ergebenden Vorschlägen noch nicht
absehbar. Daher sind die gesamten Auswirkungen der
aufsichtsrechtlichen Reformen auf die Deutsche Bank, ihre
Wettbewerber und Finanzdienstleistungen noch ungewiss.
Neue oder laufende aufsichtsrechtliche Reformen
Zu den Bereichen laufender oder neuer aufsichtsrechtlicher
Reformen, in denen in hohem Maße Unsicherheit darüber
herrscht, was die genauen endgültigen Anforderungen mit
sich bringen werden, die jedoch potenziell den Druck auf den
Umfang der Geschäftstätigkeit, das Bilanzvolumen und die
Rentabilität der Bank erhöhen können, gehören:
• ausstehende Bestandteile des Basel 3-Regelwerks und
die laufende Überprüfung anderer Bestandteile des Basel
3-Regelwerks, insbesondere die globale und nationale
Kalibrierung der Verschuldungsquote (Leverage Ratio), der
Mindestliquiditätsquote (Liquidity Coverage Ratio) und der
strukturellen Liquiditätsquote (Net Stable Funding Ratio),
aber auch die Kapitalanforderungen für Risiken gegenüber
zentralen Gegenparteien, die grundlegende Überprüfung
des
Handelsbuchs
und
die
Bearbeitung
von
Verbriefungstransaktionen und risikogewichteten Aktiva,
• weitere Vorschläge für Kapital-, Liquiditäts- und andere
aufsichtsrechtliche,
operationelle
oder
strukturelle
Anforderungen für Finanzinstitute, die als national
systemrelevant angesehen werden,
• Gesetzgebung, die die Wettbewerbsposition von Banken
mit Hauptgeschäftssitz in Europa betreffen würde, wie die
mögliche Einführung einer Finanztransaktionssteuer in
mehreren EU-Ländern, oder EU-Gesetzgebung, die
gemäß den Liikanen-Vorschlägen strukturelle Reformen
zur Trennung von Marktpflege und Einlagengeschäft bei
Banken mit Handelsaktiva über einer bestimmten
Schwelle verlangt,
• die zunehmende Regulierung von Finanzmarktaktivitäten,
wie
Investmentfonds,
Richtgrößen
und
Indizes,
Zahlungsdiensten und „Schattenbankwesen“. Letzteres
umfasst derzeit diskutierte neue Anforderungen für
Geldmarktfonds
und
Wertpapierfinanzierungsmärkte
sowie zukünftige Vorschläge zu anderen Nichtbanken, und
• vom Baseler Ausschuss für Bankenaufsicht (BCBS)
erlassene finale Standards zur Beschränkung großer
Risikopositionen, die Risikopositionen einer Bank
gegenüber
einer
Gegenpartei
auf
25 %
ihres
Tier-1-Kapitals (gegenüber 25 % aus der Summe des
Tier-1- und Tier-2-Kapitals) sowie Risikopositionen
40
zwischen Banken, die als systemrelevant und weltweit
tätige Banken gelten, auf 15 % des Tier-1-Kapitals
beschränken. Die Regelungen sollen voraussichtlich ab
1. Januar 2019 gelten.
Die Ungewissheit im Hinblick auf die endgültige Form und
Wechselwirkung
dieser
Initiativen
erschwert
eine
Beurteilung der hiermit verbundenen Risiken und deren
potenzieller Auswirkungen. Insbesondere die Verpflichtung,
unterschiedliche Aufsichtssysteme in unterschiedlichen
Rechtsordnungen
einzuhalten,
darunter
potenziell
widersprüchliche oder Doppelanforderungen, kann die
Kosten und den Verwaltungsaufwand der Umsetzung dieser
Reformen
erheblich
erhöhen.
Aufsichtsrechtliche
Maßnahmen in einzelnen Rechtsordnungen, die über die
weltweit vereinbarten aufsichtsrechtlichen Standards
hinausgehen,
können
ebenfalls
zu
ungleichen
Wettbewerbsbedingungen zwischen Finanzinstituten aus
unterschiedlichen Rechtsordnungen führen.
Gemäß den CRR/CRD 4-Übergangsregeln werden Kapitalinstrumente, die nicht mehr anrechnungsfähig
sind, schrittweise eliminiert, während die neuen Regeln zu den aufsichtsrechtlichen Anpassungen
sukzessive eingeführt werden. Diese Übergangsregeln sind zur Erleichterung des Übergangs der Banken
zu den vollständig umgesetzten Regeln zugelassen. Die CRR/CRD 4-Werte bei Anwendung der
Vollumsetzung berücksichtigen die Übergangsregeln nicht, d.h. alle nicht mehr anrechnungsfähigen
Kapitalinstrumente werden eliminiert und alle neuen aufsichtsrechtlichen Anpassungen werden
angewendet. Die nachfolgende Tabelle enthält eine zusammenfassende Darstellung des
aufsichtsrechtlichen Eigenkapitals, RWA und Kapitalquoten:
31. März 2014
(ungeprüft, sofern nicht anders
angegeben)
in Mio €
(sofern nicht anders angegeben)
Tier-1-Kernkapital vor aufsichtsrechtlichen
Anpassungen . . . . . . . . . . . . . . . . . . . . . .
Gesamte aufsichtsrechtliche
Anpassungen des Tier-1-Kernkapitals . .
Tier-1-Kernkapital . . . . . . . . . . . . . . . . . . .
Zusätzliches Tier-1-Kapital vor
aufsichtsrechtlichen Anpassungen . . . . .
Anpassungen des zusätzlichen Tier-1Kapitals (AT1)(1) . . . . . . . . . . . . . . . . . . . . .
Zusätzliches Tier-1-Kapital . . . . . . . . . . .
Tier-1-Kapital . . . . . . . . . . . . . . . . . . . . . . .
Tier-2-Kapital vor aufsichtsrechtlichen
Anpassungen . . . . . . . . . . . . . . . . . . . . . .
Anpassungen des Tier-2-Kapitals (T2) . .
Tier-2-Kapital . . . . . . . . . . . . . . . . . . . . . . .
Aufsichtsrechtliches Eigenkapital
insgesamt . . . . . . . . . . . . . . . . . . . . . . . .
Risikogewichtete Aktiva insgesamt . . .
Kapitalquoten
Tier-1-Kernkapital (als prozentualer Anteil
der risikogewichteten Aktiva) . . . . . . . . .
Tier-1-Kapital (als prozentualer Anteil der
risikogewichteten Aktiva) . . . . . . . . . . . .
Aufsichtsrechtliches Eigenkapital (als
prozentualer Anteil der
risikogewichteten Aktiva) . . . . . . . . . . . .
31. Dezember 2013
Pro forma
CRR/CRD 4
VollPro forma
umsetzung CRR/CRD 4 Basel 2.5
CRR/CRD 4
Vollumsetzung
CRR/CRD 4
54.768
54.458
53.846
53.557
53.558(2)
-19.437
35.331
-4.712
49.746
-19,850
33,995
-1.824
51.733
-15.024(2)
38.534(2)
0
10.491
0
11.741
12.701(2)
0
0
35.331
-10.482
10
49.755
0
0
33,995
-12.785
0
51.733
-519(2)
12.182(2)
50.717(2)
13.378
5.372
14,291
6.085
7.787(2)
-45
13.333
570
4.802
-107
14,184
-906
5.179
-3.040(2)
4.747(2)
48.664
373.313
54.558
376.091
48,179
350,143
56.912
355.127
55.464(2)
300.369(2)
9,5%
13,2%
9,7%
14,6%
12,8%(2)
9,5%
13,2%
9,7%
14,6%
16,9%(2)
13,0%
14,5%
13,8%
16,0%
18,5%(2)
Quelle: Deutsche Bank Zwischenbericht zum 31. März 2014
1 Vom zusätzlichen Tier-1-Kapital in Abzug zu bringende Posten, die das zusätzliche Tier-1-Kapital übersteigen, werden vom
Tier-1-Kernkapital abgezogen (enthalten in „Gesamte aufsichtsrechtliche Anpassungen des Tier-1-Kernkapitals“).
2 Geprüft.
41
B.5
Gruppe des Emittenten und
Stellung des Emittenten
innerhalb dieser Gruppe
Die Deutsche Bank AG ist die Muttergesellschaft einer
internationalen
Gruppe
bestehend
aus
Banken,
Kapitalmarktunternehmen,
Fondsgesellschaften,
einer
Immobilienfinanzierungsgesellschaft,
RatenzahlungsFinanzierungsgesellschaften,
Forschungsund
Beratungsunternehmen und anderen Gesellschaften in
Deutschland und weltweit.
B.6
Personen, die eine
meldepflichtige direkte oder
indirekte Beteiligung am
Eigenkapital des Emittenten
halten
Auf der Grundlage der bei der Bank eingegangenen
Stimmrechtsmitteilungen sowie weiterer der Bank zur
Verfügung gestellter Aktionärsinformationen sind folgende
Aktionäre wesentlich (d.h. mit mindestens 3 %) am
stimmberechtigten Grundkapital der Deutsche Bank AG
beteiligt:
Prozentsatz
Anzahl der
der
Aktien
Stimmrechte
Aktionär
Scheich Hamad Bin Jassim Bin
Jabor Al-Thani, Doha,
Katar(1) . . . . . . . . . . . . . . . . . . . 62.889.620(1)
BlackRock, Inc., New York,
USA(2) . . . . . . . . . . . . . . . . . . . . 47.748.904(2)
1
2
5,83%(1)
5,14%(2)
Nach Kenntnis der Bank werden die Aktien und Stimmrechte, die
Scheich Hamad Bin Jassim Bin Jabor Al-Thani zugerechnet werden,
indirekt über die Paramount Services Holdings Ltd., eine
Investmentgesellschaft, deren wirtschaflicher Eigentümer er ist und
die von ihm kontrolliert wird, gehalten. Der Prozentsatz der
Stimmrechte ist berechnet auf der Grundlage der 1.079.431.146
Stammaktien der Bank, die zum Datum dieses Prospekts
ausgegeben sind.
Basiert auf einer Stimmrechtsmitteilung vom 23. Dezember 2010; der
Prozentsatz der Stimmrechte ist berechnet auf der Grundlage des am
Tag der Stimmrechtsmitteilung eingetragenen Grundkapitals der
Bank.
Mit
Ausnahme
der
oben
aufgeführten
Stimmrechtsmitteilungen hat die Gesellschaft keine
Mitteilung einer Person erhalten, die zum 2. Juni 2014 3 %
oder mehr der Aktien der Gesellschaft hält.
Jede
Aktie
der
Gesellschaft
gewährt
in
der
Hauptversammlung der Gesellschaft eine Stimme. Es gibt
keine Sonderstimmrechte für wesentliche Aktionäre der
Gesellschaft.
B.7
Ausgewählte wesentliche historische Finanzinformationen
Die nachfolgenden Tabellen fassen ausgewählte Unternehmens- und Finanzdaten des Deutsche
Bank-Konzerns für die zum 31. März 2014 bzw. 31. März 2013 endenden Dreimonatszeiträume
sowie die zum 31. Dezember 2013, 2012 und 2011 endenden Geschäftsjahre zusammen.
Die Daten der Konzern-Gewinn-und-Verlust-Rechnung und der Konzern-Kapitalflussrechnung für
den zum 31. März 2014 endenden Dreimonatszeitraum (und die Vergleichszahlen für die
Vorjahresperiode endend zum 31. März 2013) sowie die Daten der Konzernbilanz zum 31. März
2014 wurden dem nach den International Financial Reporting Standards des International
Accounting Standards Board (IASB), wie sie in der EU anzuwenden sind, (nachfolgend „IFRS“)
erstellten, verkürzten Konzernzwischenabschluss der Deutschen Bank für den zum 31. März 2014
endenden Dreimonatszeitraum (mit Vergleichszahlen für den zum 31. März 2013 endenden
Dreimonatszeitraum) entnommen. Die Daten der Konzern-Gewinn-und-Verlust-Rechnung und der
Konzern-Kapitalflussrechnung für die zum 31. Dezember 2013, 2012 und 2011 endenden
Geschäftsjahre sowie die Daten der Konzernbilanz zum 31. Dezember 2013 und 2012 wurden
dem nach IFRS erstellten Konzernabschluss der Deutschen Bank für das zum 31. Dezember 2013
endende Geschäftsjahr (mit Vergleichszahlen für die Vorjahre) entnommen. Die Daten der
Konzernbilanz zum 31. Dezember 2011 wurden dem nach IFRS erstellten Konzernabschluss der
Deutschen Bank für das zum 31. Dezember 2012 endende Geschäftsjahr (mit Vergleichszahlen für
das Vorjahr) entnommen. Der verkürzte Konzernzwischenabschluss für den zum 31. März 2014
endenden
Dreimonatszeitraum
wurde
von
KPMG
Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft („KPMG”) einer prüferischen Durchsicht unterzogen und mit
einer Bescheinigung nach prüferischer Durchsicht versehen. Die Konzernabschlüsse für die
42
Geschäftsjahre 2013, 2012 und 2011 wurden von KPMG geprüft und mit einem
uneingeschränkten Bestätigungsvermerk versehen. Die Angaben zu den Eigenmitteln und den
Kapitalquoten beruhen für den zum 31. März 2014 endenden Dreimonatszeitraum auf den
Anhangangaben des verkürzten Konzernzwischenabschlusses für den zum 31. März 2014
endenden Dreimonatszeitraum sowie für die zum 31. Dezember 2013, 2012 und 2011 endenden
Geschäftsjahre auf den Erläuterungen (Notes) zu den vorgenannten geprüften
Konzernabschlüssen, soweit nicht anders angegeben.
Finanzangaben in den folgenden Tabellen, die mit „geprüft” gekennzeichnet sind, wurden den
oben beschriebenen geprüften Abschlüssen entnommen, und Finanzangaben, die mit „prüferisch
durchgesehen” gekennzeichnet sind, wurden dem oben beschriebenen prüferisch
durchgesehenen Zwischenabschluss entnommen. Finanzangaben, die in den folgenden Tabellen
mit „ungeprüft“ gekennzeichnet sind, sind weder geprüft noch wurden sie prüferisch
durchgesehen.
Der verkürzte Konzernzwischenabschluss für den zum 31. März 2014 endenden
Dreimonatszeitraum sowie der Konzernabschluss für das zum 31. Dezember 2013 endende
Geschäftsjahr sind im „Finanzteil” dieses Prospekts abgedruckt. Die Konzernabschlüsse für die
zum 31. Dezember 2012 und 2011 endenden Geschäftsjahre sind in Form eines Verweises in
diesen Prospekt einbezogen.
Daten der Konzern-Gewinn-und-Verlust-Rechnung
in Mio € (außer Angaben je Aktie)
Zinsen und ähnliche Erträge . . . . . . . . . . . . . . . . . . . .
Zinsaufwendungen . . . . . . . . . . . . . . . . . . . . . . . . . . .
Zinsüberschuss . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risikovorsorge im Kreditgeschäft . . . . . . . . . . . . . . .
Zinsüberschuss nach Risikovorsorge im
Kreditgeschäft . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provisionsüberschuss . . . . . . . . . . . . . . . . . . . . . . . . .
Ergebnis aus zum beizulegenden Zeitwert
bewerteten finanziellen Vermögenswerten/
Verpflichtungen . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ergebnis aus zur Veräußerung verfügbaren
finanziellen Vermögenswerten . . . . . . . . . . . . . . .
Ergebnis aus nach der Equitymethode bilanzierten
Beteiligungen . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sonstige Erträge . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Zinsunabhängige Erträge insgesamt . . . . . . . . . .
Personalaufwand . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sachaufwand und sonstiger Aufwand . . . . . . . . . . .
Aufwendungen im Versicherungsgeschäft . . . . . . . .
Wertminderung auf immaterielle
Vermögenswerte . . . . . . . . . . . . . . . . . . . . . . . . . .
Restrukturierungsaufwand . . . . . . . . . . . . . . . . . . . . .
Zinsunabhängige Aufwendungen insgesamt . . .
Ergebnis vor Steuern . . . . . . . . . . . . . . . . . . . . . . . .
Ertragsteueraufwand/-ertrag (–) . . . . . . . . . . . . . . . . .
Jahresüberschuss/Jahresfehlbetrag (–) . . . . . . . .
Den Anteilen ohne beherrschenden Einfluss
zurechenbares Konzernergebnis . . . . . . . . . . . . . .
Den Deutsche Bank-Aktionären zurechenbares
Konzernergebnis . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ergebnis je Aktie (unverwässert) (in €)(1) . . . . . . . . . .
Ergebnis je Aktie (verwässert) (in €)(2) . . . . . . . . . . . .
1
Dreimonatszeitraum
zum 31. März
2014
2013
(prüferisch
durchgesehen)
Geschäftsjahr
zum 31. Dezember
2013
2012
2011
(geprüft)
6.246
2.871
3.375
246
6.594
2.944
3.650
354
25.601
10.768
14.834
2.065
31.593
15.619
15.975
1.721
34.366
16.921
17.445
1.839
3.129
3.038
3.296
2.995
12.769
12.308
14.254
11.809
15.606
11.878
1.616
2.697
3.817
5.608
2.724
73
110
394
301
123
154
136
5.018
3.349
3.010
52
36
-97
5.741
3.548
2.818
192
369
193
17.082
12.329
15.126
460
163
-120
17.761
13.490
15.017
414
-264
1.322
15.783
13.135
12.657
207
0
56
6.466
1.680
577
1.103
0
65
6.623
2.414
753
1.661
79
399
28.394
1.456
775
681
1.886
394
31.201
814
498
316
–
–
25.999
5.390
1.064
4.326
20
10
15
53
194
1.083
1,06
1,03
1.651
1,76
1,71
666
0,67
0,65
263
0,28
0,27
4.132
4,45
4,30
Die Gesellschaft hat das unverwässerte Ergebnis je Aktie mittels Division des den Deutsche Bank-Aktionären zurechenbaren
Konzernergebnisses durch die durchschnittliche Anzahl der ausstehenden Stammaktien ermittelt. Die durchschnittliche
Anzahl der ausstehenden Stammaktien ergibt sich aus dem Durchschnitt der ausgegebenen Stammaktien, vermindert um
die durchschnittliche Anzahl an Aktien im Eigenbestand und um die durchschnittliche Anzahl an Aktien, die über Terminkäufe
erworben werden, die durch Lieferung in Aktien erfüllt werden, und zuzüglich noch nicht zugeteilter unverfallbarer Aktien
aus aktienbasierten Vergütungsplänen.
43
2
Die Gesellschaft hat das verwässerte Ergebnis je Aktie mittels Division des den Deutsche Bank-Aktionären zurechenbaren
Konzernergebnisses durch die durchschnittliche Anzahl der ausstehenden Stammaktien ermittelt, jeweils unter Annahme
der Wandlung ausstehender Wertpapiere in Stammaktien oder der Ausübung sonstiger Kontrakte zur Emission von
Stammaktien wie Aktienoptionen, wandelbaren Schuldtiteln, noch nicht unverfallbaren Aktienrechten und Terminkontrakten.
Die oben genannten Finanzinstrumente werden bei der Berechnung des verwässerten Ergebnisses je Aktie nur
berücksichtigt, wenn sie in dem jeweiligen Berichtszeitraum einen verwässernden Effekt haben. Die durchschnittliche
Anzahl der ausstehenden Stammaktien ergibt sich aus dem Durchschnitt der ausgegebenen Stammaktien, vermindert um
die durchschnittliche Anzahl an Aktien im Eigenbestand und um die durchschnittliche Anzahl an Aktien, die über Terminkäufe
erworben werden, die durch Lieferung in Aktien erfüllt werden, und zuzüglich noch nicht zugeteilter unverfallbarer Aktien
aus aktienbasierten Vergütungsplänen.
Daten der Konzernbilanz
in Mio €
31. Dezember
31. März
2014
2013
(prüferisch
durchgesehen)
Aktiva:
Barreserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Verzinsliche Einlagen bei Kreditinstituten . . . . . . . . . . . . . .
Forderungen aus übertragenen Zentralbankeinlagen und
aus Wertpapierpensionsgeschäften (Reverse Repos) . .
Forderungen aus Wertpapierleihen . . . . . . . . . . . . . . . . . . .
Zum beizulegenden Zeitwert bewertete finanzielle
Vermögenswerte insgesamt . . . . . . . . . . . . . . . . . . . . . . .
Zur Veräußerung verfügbare finanzielle
Vermögenswerte . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nach der Equitymethode bilanzierte Beteiligungen . . . . . .
Forderungen aus dem Kreditgeschäft . . . . . . . . . . . . . . . . .
Sachanlagen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Geschäfts- oder Firmenwert und sonstige immaterielle
Vermögenswerte . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sonstige Aktiva . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ertragsteuerforderungen(1) . . . . . . . . . . . . . . . . . . . . . . . . . .
Summe der Aktiva . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Passiva:
Einlagen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Verbindlichkeiten aus übertragenen Zentralbankeinlagen
und aus Wertpapierpensionsgeschäften (Repos) . . . . . .
Verbindlichkeiten aus Wertpapierleihen . . . . . . . . . . . . . . . .
Zum beizulegenden Zeitwert bewertete finanzielle
Verpflichtungen insgesamt . . . . . . . . . . . . . . . . . . . . . . . .
Sonstige kurzfristige Geldaufnahmen . . . . . . . . . . . . . . . . .
Sonstige Passiva . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rückstellungen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ertragsteuerverbindlichkeiten(1) . . . . . . . . . . . . . . . . . . . . . . .
Langfristige Verbindlichkeiten . . . . . . . . . . . . . . . . . . . . . . . .
Hybride Kapitalinstrumente (Trust Preferred Securities) . . .
Summe der Verbindlichkeiten . . . . . . . . . . . . . . . . . . . . . .
Stammaktien, ohne Nennwert, rechnerischer
Nominalwert 2,56 € . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Kapitalrücklage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gewinnrücklagen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Eigene Aktien im Bestand zu Anschaffungskosten . . . . . .
Kumulierte sonstige erfolgsneutrale
Eigenkapitalveränderung . . . . . . . . . . . . . . . . . . . . . . . . . .
Den Deutsche Bank-Aktionären zurechenbares
Eigenkapital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Anteile ohne beherrschenden Einfluss . . . . . . . . . . . . . . . . .
Eigenkapital einschließlich Anteile ohne
beherrschenden Einfluss . . . . . . . . . . . . . . . . . . . . . . . . .
Summe der Passiva . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
44
2012
2011
(geprüft)
16.433
73.693
17.155
77.984
27.877
120.637
15.928
162.000
26.514
26.697
27.363
20.870
36.570
24.013
25.773
31.337
862.219
899.257 1.209.839 1.280.799
51.204
3.675
380.954
4.318
48.326
3.581
376.582
4.420
13.951
168.189
8.727
1.636.574
49.400
3.577
397.377
4.963
45.281
3.759
412.514
5.509
13.932
14.219
15.802
112.539
123.702 154.794
9.393
10.101
10.607
1.611.400 2.022.275 2.164.103
516.565
527.750
577.210
601.730
12.815
3.432
13.381
2.304
36.144
3.166
35.311
8.089
630.628
55.175
211.598
4.614
2.589
132.895
10.249
1.580.557
637.404
925.193 1.028.447
59.767
69.661
65.356
163.595
179.099 187.816
4.524
5.110
2.621
2.701
3.036
4.313
133.082
157.325 163.416
11.926
12.091
12.344
1.556.434 1.968.035 2.109.443
2.610
25.993
29.574
-9
2.610
26.204
28.376
-13
2.380
23.776
29.199
-60
2.380
23.695
30.119
-823
-2.415
-2.457
-1.294
-1.981
55.753
264
54.719
247
54.001
239
53.390
1.270
56.017
1.636.574
54.966
54.240
54.660
1.611.400 2.022.275 2.164.103
Ertragsteuerforderungen und –verbindlichkeiten umfassen latente und laufende Steuern.
Daten der Konzern-Kapitalflussrechnung
Dreimonatszeitraum
zum 31. März
in Mio €
Jahresüberschuss/Jahresfehlbetrag (–) . . . . . . . . .
Jahresüberschuss/Jahresfehlbetrag (–), bereinigt
um nicht liquiditätswirksamen Aufwand/Ertrag
und sonstige Posten . . . . . . . . . . . . . . . . . . . . . .
Nettocashflow aus operativer
Geschäftstätigkeit . . . . . . . . . . . . . . . . . . . . . . . .
Nettocashflow aus Investitionstätigkeit . . . . . . . .
Nettocashflow aus Finanzierungstätigkeit . . . . . .
Nettoeffekt aus Wechselkursänderungen der
Zahlungsmittel und
Zahlungsmitteläquivalente . . . . . . . . . . . . . . . . .
Zahlungsmittel und
Zahlungsmitteläquivalente (Gesamt) . . . . . .
2014
2013
(prüferisch
durchgesehen)
1.103
1.661
Geschäftsjahr
zum 31. Dezember
2013
2012
2011
(geprüft)
681
316
4.326
2.190
3.095
4.483
5.365
8.412
3.828
-2.634
-3.281
7.756
-1.329
-1.866
7.184
-3.015
-544
-23.954
-2.647
-2.152
7.802
11.915
-3.160
110
-284
-907
39
-964
46.406
57.598
56.041
53.321
81.946
Ausgewählte wesentliche Kennzahlen des Konzerns
DreiGeschäftsjahr
monatszeitraum
zum 31. Dezember
zum 31. März
2014
2013
2012
2011
(geprüft, sofern nicht anders
(prüferisch
angegeben)
durchgesehen,
sofern nicht
anders angegeben)
Nettovermögen je ausstehende Stammaktie
(unverwässert)(1)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Materielles Nettovermögen je ausstehende Stammaktie
(unverwässert)(1)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Eigenkapitalrendite vor Steuern (basierend auf dem
durchschnittlichen den Deutsche Bank-Aktionären
zurechenbaren Eigenkapital(1)(4) . . . . . . . . . . . . . . . . . . . .
Eigenkapitalrendite vor Steuern (basierend auf dem
durchschnittlichen Active Equity)(5) . . . . . . . . . . . . . . . .
Eigenkapitalrendite nach Steuern (basierend auf dem
durchschnittlichen den Deutsche Bank-Aktionären
zurechenbaren Eigenkapital)(1)(6) . . . . . . . . . . . . . . . . . . .
Eigenkapitalrendite nach Steuern (basierend auf dem
durchschnittlichen Active Equity)(7) . . . . . . . . . . . . . . . .
Aufwand-Ertrag-Relation(8) . . . . . . . . . . . . . . . . . . . . . . . . .
Personalaufwandsquote(9) . . . . . . . . . . . . . . . . . . . . . . . . . .
Sachaufwandsquote(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier-1-Kapitalquote (Periodenende)(1)(11) . . . . . . . . . . . . . . .
Tier-1-Kernkapitalquote (Periodenende)(1)(11)(12) . . . . . . . . .
€ 54,31
€ 53,24 € 57,37 € 58,11
€ 40,72
€ 39,69 € 42,26 € 40,91
12,0%
2,6%
1,3%
10,2%
12,2%
2,6%
1,4%
10,3%
7,8%
1,2%
0,5%
8,2%
7,9%
77,0%
39,9%
37,1%
13,2%
13,2%
1,2%
89,0%
38,6%
50,3%
16,9%
12,8%
0,5%
92,5%
40,0%
52,5%
15,1%
11,4%
8,2%
78,2%
39,5%
38,7%
12,9%
9,5%
Quelle: Deutsche Bank Zwischenbericht zum 31. März 2014, Deutsche Bank Annual Report 2013 on Form 20-F
1 Ungeprüft.
2 Ermittelt durch Division des den Deutsche Bank-Aktionären zurechenbaren Eigenkapitals durch die Anzahl der ausstehenden
Stammaktien (unverwässert, beide zum Bilanzstichtag).
3 Ermittelt durch Division des den Deutsche Bank-Aktionären zurechenbaren Eigenkapitals (abzüglich des Geschäfts- oder
Firmenwerts und sonstiger immaterieller Vermögenswerte) durch die Anzahl der ausstehenden Stammaktien (unverwässert,
beide zum Bilanzstichtag).
4 Prozentualer Anteil des den Deutsche Bank-Aktionären zurechenbaren Ergebnisses vor Steuern an dem durchschnittlichen
den Aktionären zurechenbaren Eigenkapital.
5 Prozentualer Anteil des den Deutsche Bank-Aktionären zurechenbaren Ergebnisses vor Steuern an dem durchschnittlichen
Active Equity der Gesellschaft. Aus Gründen der Vergleichbarkeit berechnet die Deutsche Bank eine bereinigte Kennziffer
für ihre Eigenkapitalrendite. Diese bereinigte Kennziffer bezeichnet die Deutsche Bank als „Eigenkapitalrendite vor Steuern,
basierend auf dem durchschnittlichen Active Equity”. Es handelt sich dabei nicht um eine IFRS-basierte Kennziffer. Bei
einem Vergleich sollten daher die Unterschiede bei der Berechnung dieser Quoten berücksichtigt werden. Die Positionen,
um die die Deutsche Bank das durchschnittliche den Deutsche Bank-Aktionären zurechenbare Eigenkapital (2013:
56,1 Mrd €; 2012: 55,6 Mrd €; 2011: 50,5 Mrd €) bereinigt, sind die durchschnittliche jährliche Dividendenabgrenzung, die
45
unterjährig abgegrenzt wird (2013: 646 Mio €; 2012: 670 Mio €; 2011: 617 Mio €). Die Dividende wird einmal jährlich im
Folgejahr nach Zustimmung der Hauptversammlung ausgezahlt. In 2011 wurde das durchschnittliche Active Equity ebenfalls
um die durchschnittlichen Gewinne/Verluste in der sonstigen erfolgsneutralen Eigenkapitalveränderung ohne Anpassungen
aus der Währungsumrechnung (alle Bestandteile nach darauf entfallenden Steuern) von minus 519 Mio € angepasst.
6 Prozentualer Anteil des den Deutsche Bank-Aktionären zurechenbaren Ergebnisses an dem durchschnittlichen den
Aktionären zurechenbaren Eigenkapital.
7 Prozentualer Anteil des den Deutsche Bank-Aktionären zurechenbaren Ergebnisses an dem durchschnittlichen Active Equity.
8 Prozentualer Anteil der Zinsunabhängigen Aufwendungen insgesamt am Zinsüberschuss vor Risikovorsorge im
Kreditgeschäft plus Zinsunabhängige Erträge.
9 Prozentualer Anteil des Personalaufwands am Zinsüberschuss vor Risikovorsorge im Kreditgeschäft plus Zinsunabhängige
Erträge.
10 Prozentualer Anteil des Zinsunabhängigen Sachaufwands, der sich aus den Zinsunabhängigen Aufwendungen abzüglich
Personalaufwand zusammensetzt, am Zinsüberschuss vor Risikovorsorge im Kreditgeschäft plus Zinsunabhängige Erträge
11 Die Kapitalquoten zum 31. März 2014 beruhen auf den Übergangsregeln des CRR/CRD 4-Kapitalrahmenwerks. Die
Kapitalquoten zum 31. Dezember 2013, 2012 und 2011 basieren auf den überarbeiteten Kapitalanforderungen für das
Handelsbuch und für Verbriefungspositionen im Zuge der Eigenkapitalrichtline 3, die auch als „Basel 2.5“ bezeichnet
werden und die im deutschen Kreditwesengesetz (KWG) und in der Solvabilitätsverordnung in deutsches Recht umgesetzt
wurden. Sie enthalten keine Übergangsposten gemäß § 64h Absatz 3 KWG. Die Kapitalquoten setzen das jeweilige Kapital
in Beziehung zu den Risikoaktiva für das Kredit-, Markt- und operationelle Risiko.
12 Vor dem 31. März 2014 ausgewiesen als „Tier-1-Kapitalquote ohne Hybridinstrumente (Periodenende)“.
Informationen über die Aktien der Deutsche Bank AG
in € je Aktie
Börsenkurs (XETRA):
Aktienkurs zum Ende der Berichtsperiode . . . . . . . . . . . . .
Aktienkurs höchst . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Aktienkurs tiefst . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dreimonatszeitraum
zum 31. März
2014
32,48
40,00
30,76
Geschäftsjahr
zum 31. Dezember
2013
2012
2011
34,68
38,73
29,41
32,95
39,51
22,11
29,44
48,70
20,79
Quelle: Deutsche Bank Zwischenbericht zum 31. März 2014, Deutsche Bank Annual Report 2013 on Form 20-F
Wesentliche Änderungen der
Finanzlage und des
Betriebsergebnisses
Jüngste Entwicklungen
Zwischen dem 31. März 2014 und dem Datum dieses
Prospekts gab es die folgenden wesentlichen Entwicklungen
im Hinblick auf die Finanzlage und das Betriebsergebnis der
Deutschen Bank.
Im April und Mai 2014 sah sich CB&S mit einem anhaltend
anspruchsvollen
Marktumfeld
mit
einem
niedrigen
Kundenvolumen und niedrigen Volatilitäten in vielen
Schlüsselbereichen konfrontiert. Auf der Grundlage der
Geschäftsentwicklung seit dem 31. März 2014 erwartet die
Deutsche Bank, dass die Erträge in CB&S im zweiten Quartal
2014 um einen im Vergleich zum Rückgang im ersten Quartal
2014 gegenüber dem Vorjahr ähnlichen bis leicht erhöhten
Umfang niedriger ausfallen als im Vorjahresquartal, was sich
auch auf den Gewinn vor Steuern im zweiten Quartal 2014
gegenüber dem entsprechenden Zeitraum im Jahr 2013
auswirkt. Die Erträge aus dem Handel mit Anleihen sind im
zweiten Quartal 2014 gegenüber dem Vorjahreszeitraum
überwiegend in einem Umfang zurückgegangen, der im
Wesentlichen dem Rückgang im ersten Quartal 2014
gegenüber dem Vorjahr entspricht, während die Erträge aus
dem Aktienhandel, die im ersten Quartal 2014 gestiegen
sind, sich jetzt im Vergleich zum Vorjahreszeitraum
tendenziell nach unten bewegen. Der Gewinn vor Steuern in
PBC lag in den ersten beiden Monaten des zweiten Quartals
2014 unter dem Vergleichszeitraum im Jahr 2013. Ohne
Berücksichtigung einer Reihe von kleineren Gewinnen, die im
entsprechenden Zeitraum 2013 zu verzeichnen waren, sich
aber in 2014 nicht wiederholten, entsprach der Gewinn vor
Steuern im April und Mai 2014 größtenteils dem
Vorjahreszeitraum mit höheren Erträgen und einer
rückläufigen Risikovorsorge im Kreditgeschäft, die ein
46
anhaltend positives Wirtschaftsumfeld in Deutschland
widerspiegelt, das teilweise durch eine höhere Kostenbasis
ausgeglichen wurde. Seit dem 31. März 2014 hat GTB eine
Steigerung des Gewinns vor Steuern gegenüber dem
Vorjahresquartal verzeichnet, gestützt durch eine Zunahme
der zugrunde liegenden Erträge im Einklang mit der Strategie
der Deutschen Bank und einer niedrigeren Kostenbasis. Die
Geschäftsentwicklung in DeAWM verbesserte sich in den
ersten beiden Monaten des zweiten Quartals 2014 gegenüber
dem Vorjahresquartal, was vornehmlich auf niedrigere
Umsetzungskosten im Zusammenhang mit dem OperationalExcellence(OpEx)-Programm und Kosteneinsparungen aus
einer verbesserten Betriebs- und Technologieplattform
zurückzuführen war, was teilweise durch leicht rückläufige
Erträge ausgeglichen wurde. Der Verlust vor Steuern in NCOU
ging im April und Mai 2014 im Vergleich zum
Vorjahreszeitraum zurück. Rückläufige Erträge und eine
verbesserte Kostenbasis spiegeln die Effekte der
Risikoabbaustrategie der Deutschen Bank wider.
Am 28. April 2014 beschloss der Vorstand der Deutsche
Bank AG mit Zustimmung des Präsidialausschusses des
Aufsichtsrats, erstmalig Zusätzliches Tier-1-Kernkapital in
mehreren Währungen zu begeben. Insgesamt machte das
Volumen dieser Transaktion rund 3,5 Mrd € aus und bildete
den ersten Schritt in der geplanten Platzierung von CRR/CRD
4-konformem zusätzlichem Kernkapital im Volumen von
insgesamt rund 5 Mrd €, die bis Ende 2015 vorgesehen ist.
Die Transaktion umfasste das Angebot von Undated Noncumulative Fixed to Reset Rate Additional Tier 1 Notes im
Volumen von 1,75 Mrd € („Euro-AT1-Anleihen“), Undated
Non-cumulative Fixed to Reset Rate Additional Tier 1 Notes
im Volumen von 650 Mio £ („GBP-AT1-Anleihen“) und
Undated Non-cumulative Fixed to Reset Rate Additional Tier
1 Notes im Volumen von 1,25 Mrd $ („USD-AT1-Anleihen“
und zusammen mit den Euro-AT1-Anleihen und den GBPAT1-Anleihen die „AT1-Anleihen“), die von der Deutschen
Bank im Mai 2014 begeben wurden. Die AT1-Anleihen sollen
Additional-Tier-1-Instrumente im Sinne von Art. 52 Abs. 1
CRR darstellen. Die ausgegebenen AT1-Anleihen wurden mit
einem Optionsschein ausgestattet, der zur Zeichnung von
insgesamt 30.250 neuer Stammaktien der Deutsche Bank AG
berechtigt.
Am 15. Mai 2014 gab die Deutsche Bank bekannt, dass sie
mit Blackstone Real Estate Partners VII eine Vereinbarung
über den Verkauf von Nevada Property 1 LLC erzielt hat, dem
Eigentümer von The Cosmopolitan of Las Vegas, einem
Ressort und Casino. Im Rahmen der Transaktion wird
Blackstone Real Estate Partners VII The Cosmopolitan of Las
Vegas zu 100 % für USD 1,73 Mrd in bar erwerben. Die
Transaktion
erfolgt
vorbehaltlich
der
behördlichen
Genehmigungen. Die Transaktion wird für die Bank einen
positiven Nettoeffekt der Common-Equity-Tier-1-Kapitalquote
gemäß CRR/CRD 4 (volle Umsetzung) von rund fünf
Basispunkten bei Abschluss des Verkaufs haben. The
Cosmopolitan of Las Vegas wird in der Non-Core Operations
Unit (NCOU) der Bank geführt.
Die Deutsche Bank gab am 18. Mai 2014 bekannt, dass sie
die Begebung von 59.931.506 neuen Aktien zu einem Preis
von 29,20 € je Aktie an Paramount Services Holdings Ltd.
beschlossen hat, einer Investmentgesellschaft im
wirtschaftlichen Eigentum und unter Kontrolle von Scheich
47
Hamad Bin Jassim Bin Jabor Al- Thani, der beabsichtigt, ein
Ankerinvestor in der Deutschen Bank zu bleiben (das
„Ankerinvestment“). Die Transaktion wurde von der
Deutschen Bank als Kapitalerhöhung unter Ausschluss des
Bezugsrechts der Aktionäre strukturiert. Gemäß den
Bestimmungen des Ankerinvestments hat sich Paramount
Services Holdings Ltd. verpflichtet, sämtliche Bezugsrechte
im Angebot auszuüben, die ihr in Bezug auf ihre gesamte
Beteiligung an der Deutschen Bank zum Trennungstermin
zugeteilt werden. Die Kapitalerhöhung im Rahmen des
Ankerinvestments
wurde
vor
dem
Angebot
im
Handelsregister eingetragen.
Am 18. Mai 2014 kündigte die Deutsche Bank eine
Kapitalerhöhung im voraussichtlichen Volumen von rund
8 Mrd € an. Die angekündigte Transaktion beinhaltet die
Emission neuer Aktien im Volumen von 1,75 Mrd € an den
Ankerinvestor (wie vorstehend beschrieben) und eine
vollumfänglich
garantierte
Bezugsrechtsemission,
die
Gegenstand dieses Prospekts ist. Außerdem bekräftige die
Deutsche Bank ihr Bekenntnis zur Strategie 2015+ und gab
aktualisierte finanzielle Ziele sowie weitere Details zu ihrer
Wachstumsstrategie bekannt.
Dreimonatszeitraum zum 31. März 2014
Die wesentlichen finanziellen Kennzahlen des Konzerns für
das erste Quartal 2014 waren wie folgt:
• Die Konzernerträge beliefen sich im ersten Quartal 2014
auf 8,4 Mrd € und waren damit um 11 % niedriger als im
ersten Quartal 2013. Dieser Rückgang reflektiert
insbesondere den Ertragsrückgang in CB&S.
• Das Ergebnis vor Steuern in Höhe von 1,7 Mrd € ist
gegenüber dem ersten Quartal 2013 um 30 % gefallen.
• Der Gewinn nach Steuern reduzierte sich nach 1,7 Mrd € im
ersten Quartal 2013 auf 1,1 Mrd € im ersten Quartal 2014.
• Die Common Equity Tier-1-Kapitalquote gemäß CRR/CRD 4
(Vollumsetzung) belief sich am Ende des ersten Quartals
2014 auf 9,5 %.
• Die angepasste CRR/CRD 4-Verschuldungsquote belief
sich am Ende des ersten Quartals 2014 auf 3,2 %.
• Die risikogewichteten Aktiva gemäß CRR/CRD 4 beliefen
sich im ersten Quartal auf 373 Mrd €.
Die finanziellen Leistungskennzahlen (KPIs) des Konzerns
zum 31. März 2014 sind in der folgenden Tabelle aufgeführt.
Konzernfinanzkennzahlen
31. März 2014 31. März 2013
(prüferisch durchgesehen,
sofern nicht anders
angegeben)
Eigenkapitalrendite nach Steuern
(basierend auf dem durchschnittlichen
Active Equity) . . . . . . . . . . . . . . . . . . . . . .
Aufwand-Ertrag-Relation(3) . . . . . . . . . . . . .
Kostenersparnis(4)(5) . . . . . . . . . . . . . . . . . . .
Investments (OpEx)(5)(6) . . . . . . . . . . . . . . . .
Common Equity Tier-1-Kapitalquote
gemäß CRR/CRD 4
(Vollumsetzung)(5)(7) . . . . . . . . . . . . . . . . .
Angepasste CRR/CRD
4-Verschuldungsquote(5)(8) . . . . . . . . . . . .
48
7,9%(1)
77,0%(1)
€ 2,3 Mrd(1)
€ 2,1 Mrd(1)
12,3%(2)
70,5%(2)
€ 0,6 Mrd(2)
€ 0,7 Mrd(2)
9,5%
8,8%
3,2%
N/A
N/A – Nicht anwendbar
1 Für den zum 31. März 2014 endenden Dreimonatszeitraum.
2 Für den zum 31. März 2014 endenden Dreimonatszeitraum.
3 Prozentualer Anteil der Zinsunabhängigen Aufwendungen insgesamt
am Zinsüberschuss vor Risikovorsorge im Kreditgeschäft plus
Zinsunabhängige Erträge.
4 Realisierte Kostenersparnis aus der Implementierung des OpExProgramms.
5 Ungeprüft.
6 Investments (OpEx) sind Kosten, welche für die Realisierung der
Kostenersparnis im Rahmen des OpEx-Programms benötigt werden.
7 Die Common Equity Tier-1-Kapitalquote gemäß CRR/CRD
4 (Vollumsetzung) repräsentiert die Kalkulation der Deutschen Bank
der Kernkapitalquote ohne die Übergangsphase von CRR/CRD 4.
8 Die angepasste CRR/CRD 4-Verschuldungsquote entspricht der
Berechnung der Deutschen Bank, basierend auf der Veröffentlichung
der CRR/CRD 4 am 27. Juni 2013 in der geänderten Fassung.
Die Ertragslage im ersten Quartal 2014 reflektiert ein
gemischtes Ergebnis. Dabei standen im Vergleich zum
Vorjahr reduzierten Beiträgen aus den Geschäftsbereichen
Corporate Banking & Securities (CB&S), Deutsche Asset &
Wealth Management (DeAWM) und Non-Core Operations
Unit (NCOU) leicht höhere Erträgen in Private & Business
Clients (PBC) gegenüber, während die Erträge in Global
Transaction Banking (GTB) gegenüber dem Vorjahresquartal
nahezu konstant blieben. Die genannten Ertragsrückgänge
reflektieren eine geringere Kundenaktivität in Verbindung mit
einer Unsicherheit bezüglich der Schwellenländer, ein
weiterhin niedriges Zinsniveau und eine sehr hohe
Wettbewerbsintensität. Die Deutsche Bank hat weiterhin
Fortschritte in ihrem Operational Excellence (OpEx)
Programm gemacht, welches sich in 2014 auf die
komplexeren Initiativen fokussiert. Kostenreduzierungen
infolge der laufenden Implementierung des OpEx-Programms
haben es der Deutschen Bank erlaubt, höhere Kosten, die
aus steigenden regulatorischen Anforderungen resultieren,
auszugleichen und auch weiterhin in die Verbesserung der
Plattform zu investieren.
Die Erträge des Konzerns verringerten sich im ersten Quartal
2014 um 11 % oder 999 Mio € auf 8,4 Mrd € gegenüber
9,4 Mrd € im ersten Quartal 2013. In CB&S gingen die
Erträge im Vergleich zum ersten Quartal 2013 um 471 Mio €
(10 %) auf 4,1 Mrd € zurück. Ursächlich dafür war vor allem
ein Ertragsrückgang im Bereich Sales & Trading (debt and
other products). Hier sanken die Erträge gegenüber dem
ersten Quartal 2013 um 285 Mio € (10 %), was auf eine
Abnahme der Kundenaktivität und auf die anhaltende
Unsicherheit bezüglich der Schwellenländer zurückzuführen
war. Der Ertragsrückgang in CB&S enthielt zudem Verluste
aus einer Anpassung der Bewertung von Forderungen (Debt
Valuation Adjustments (DVA)) in 2014. 2013 war dagegen ein
DVA-Gewinn bilanziert worden. Die Erträge in PBC beliefen
sich im ersten Quartal 2014 auf 2,5 Mrd € und lagen damit
um 91 Mio € (4 %) über dem ersten Quartal 2013. Ursächlich
für diese Zunahme waren vor allem im ersten Quartal 2014
ausgewiesene Gewinne im Zusammenhang mit einem
Geschäftsverkauf in einer vorangegangenen Berichtsperiode
und
auch
höhere
Erträge
im
Investmentund
Versicherungsgeschäft. Die Erträge in GTB beliefen sich auf
1,0 Mrd € und lagen mit einem Rückgang von 6 Mio € (1 %)
nahezu auf Vorjahresniveau. Diese Entwicklung ist auf den
starken Wettbewerb und anhaltend niedrige Zinssätze
zurückzuführen. DeAWM verzeichnete gegenüber dem
49
ersten Quartal 2013 einen Ertragsrückgang um 177 Mio €
(14 %) auf 1,1 Mrd €, der hauptsächlich durch
Marktwertschwankungen im Versicherungsgeschäft von
Abbey Life verursacht wurde, welche im Wesentlichen in den
Zinsunabhängigen Aufwendungen ausgeglichen wurden. Die
Erträge in der NCOU in Höhe von 74 Mio € lagen um 367 Mio
€ (83 %) unter dem Wert des ersten Quartals 2013. Dies war
im Wesentlichen auf eine Reduzierung der Aktiva infolge des
Risikoabbaus und auf Verluste des Bereichs Special
Commodities Group (SCG) im Zusammenhang mit
handelbaren
Produkten
auf
dem
US-Energiemarkt
zurückzuführen. In Consolidation & Adjustments (C&A), die
die
Überleitung
der
Segmentergebnisse
auf den
Konzernabschluss beinhaltet, sanken die Erträge nach
negativen 259 Mio € im ersten Quartal 2013 auf negative 327
Mio € im ersten Quartal 2014. Diese Entwicklung resultierte
im Wesentlichen aus Effekten infolge unterschiedlicher
Bewertungsund
Bilanzierungsmethoden
bei
der
Managementberichterstattung und gemäß IFRS und aus
einem Verlust aus der Bewertungsanpassung in Bezug auf
Refinanzierungskosten bei internen unbesicherten Derivaten
(Funding Valuation Adjustment, FVA).
Die Risikovorsorge im Kreditgeschäft lag im ersten Quartal
2014 mit 246 Mio € um 108 Mio € (30 %) unter dem Wert
des ersten Quartals 2013. Dieser Rückgang reflektiert vor
allem den Wegfall hoher Einzelpositionen, die im ersten
Quartal 2013 für GTB, CB&S und die NCOU ausgewiesen
wurden. In PBC lag die Risikovorsorge über dem Wert des
ersten Quartals 2013, der durch einen Einmaleffekt aus dem
Verkauf von Portfolios positiv beeinflusst war. Ohne
Berücksichtigung
dieses
Einmaleffektes
lag
die
Risikovorsorge in PBC aufgrund des anhaltend robusten
Kreditumfelds in Deutschland unter Vorjahresniveau.
Die Zinsunabhängigen Aufwendungen lagen im ersten
Quartal 2014 mit 6,5 Mrd € um 157 Mio € (2 %) unter dem
Wert des ersten Quartals 2013. Der Personalaufwand betrug
3,3 Mrd €, was einem Rückgang von 200 Mio € (6 %)
gegenüber dem ersten Quartal 2013 entspricht. Dieser
reflektiert vor allem eine niedrigere variable Vergütung
einschließlich
einer
geringeren
Amortisierung
aufgeschobener Vergütungsbestandteile vor allem in CB&S.
Der Sach- und sonstige Aufwand in Höhe von 3,0 Mrd € stieg
gegenüber dem ersten Quartal 2013 um 192 Mio € (7 %). Ein
Faktor für diesen Anstieg waren die Kosten für die
Umsetzung des OpEx-Programms, die sich im ersten Quartal
2014 auf 301 Mio € nach 219 Mio € im ersten Quartal 2013
beliefen. Darüber hinaus trugen höhere Aufwendungen im
Zusammenhang mit aufsichtsrechtlichen Anforderungen,
höhere Investitionen in die Geschäftsplattform sowie eine
Abschreibung in NCOU zu diesem Anstieg bei. Diese
Anstiege wurden teilweise durch niedrigere Aufwendungen
für Rechtsstreitigkeiten und anhaltende positive Effekten aus
dem OpEx Programm kompensiert. Die Aufwendungen im
Versicherungsgeschäft beliefen sich im ersten Quartal 2014
auf 52 Mio €, eine Verbesserung um 141 Mio € im Vergleich
zum ersten Quartal 2013. Diesen Aufwendungen stehen
Marktwertgewinne bei Investments, die Leistungen im
Zusammenhang mit dem Versicherungsgeschäft von Abbey
Life decken, gegenüber.
Das Ergebnis vor Steuern betrug 1,7 Mrd € im ersten Quartal
2014 im Vergleich zu 2,4 Mrd € im ersten Quartal 2013 und
war vor allem auf niedrigere Erträge zurückzuführen, welche
teilweise durch Kostenreduktionen kompensiert wurden.
50
Das Ergebnis nach Steuern belief sich im ersten Quartal 2014
auf 1,1 Mrd € gegenüber 1,7 Mrd € im ersten Quartal 2013.
Der Ertragsteueraufwand betrug im ersten Quartal 2014
577 Mio € nach 753 Mio € im ersten Quartal 2013. Die
effektive Steuerquote betrug im ersten Quartal 2014 34 %
gegenüber 31 % im ersten Quartal 2013.
Geschäftsjahr 2013 und 2012
Die wesentlichen finanziellen Kennzahlen des Konzerns für
2013 waren wie folgt:
• Erträge nahmen im Konzern 2013 um 5 % auf 31,9 Mrd €
gegenüber dem Vorjahr ab, hauptsächlich zurückzuführen
auf rückläufige Erträge in CB&S,
• Gewinn vor Steuern (IBIT) gegenüber 2012 um 79 % auf
1,5 Mrd € gestiegen,
• Gewinn nach Steuern von 316 Mio € in 2012 auf 681 Mio €
in 2013 gestiegen,
• Common Equity Tier-1-Kapitalquote gemäß CRR/CRD 4
(volle pro forma Umsetzung) lag zum Jahresende 2013 bei
9,7 % (CET 1 gemäß Basel 2.5: 12,8 %) nach 7,8 % (CET
1 gemäß Basel 2.5: 11,4 %) zum Jahresende 2012,
• Angepasste Pro-forma CRR/CRD 4-Verschuldungsquote
von 3,1 % zum Jahresende 2013 und
• Risikogewichtete Aktiva („RWA“) gemäß Pro-forma-CRR/
CRD 4-Vollumsetzung in Höhe von 350 Mrd € zum
31. Dezember 2013 (Basel 2.5 RWA 300 Mrd €)
gegenüber Jahresende 2012 um 11 % gesunken (gemäß
Basel 2.5 Rückgang um 10 %).
Die finanziellen Leistungskennzahlen (KPIs) des Konzerns
zum 31. Dezember 2013 sind in der folgenden Tabelle
aufgeführt.
Konzernfinanzkennzahlen
31. Dezember 31. Dezember
2013
2012
(geprüft, sofern nicht
anders angegeben)
Eigenkapitalrendite nach Steuern
(basierend auf dem durchschnittlichen
Active Equity) . . . . . . . . . . . . . . . . . . . .
Aufwand-Ertrag-Relation(3) . . . . . . . . . . . .
Kostenersparnis(4)(5) . . . . . . . . . . . . . . . . . .
Investments (OpEx)(5)(6) . . . . . . . . . . . . . .
Common Equity Tier-1-Kapitalquote
gemäß CRR/CRD 4
(Vollumsetzung)(5)(7) . . . . . . . . . . . . . . . .
Angepasste CRR/CRD
4-Verschuldungsquote(5)(8) . . . . . . . . . .
1,2%(1)
89,0%(1)
€ 2,1 Mrd
jährlich(1)
€ 1,8 Mrd(1)
0,5%(2)
92,5%(2)
€ 0,4 Mrd
jährlich(2)
€ 0,5 Mrd(2)
9,7%
7,8%
3,1%
N/A
N/A – Nicht anwendbar
1 Für das zum 31. Dezember 2013 endende Geschäftsjahr.
2 Für das zum 31. Dezember 2012 endende Geschäftsjahr.
3 Prozentualer Anteil der Zinsunabhängigen Aufwendungen
insgesamt am Zinsüberschuss vor Risikovorsorge im Kreditgeschäft
plus Zinsunabhängige Erträge.
4 Realisierte Kostenersparnis aus der Implementierung des OpExProgramms.
5 Ungeprüft.
6 Investments (OpEx) sind Kosten, welche für die Realisierung der
Kostenersparnis im Rahmen des OpEx-Programms benötigt
werden.
7 Die Common Equity Tier-1-Kapitalquote gemäß CRR/CRD 4
(Vollumsetzung) repräsentiert die Kalkulation der Deutschen Bank
der Kernkapitalquote ohne die Übergangsphase von CRR/CRD 4.
51
8
Die angepasste CRR/CRD 4-Verschuldungsquote entspricht der
Berechnung
der
Deutschen
Bank,
basierend
auf der
Veröffentlichung der CRR/CRD 4 am 27. Juni 2013 in der
geänderten Fassung. Angabe nicht verfügbar zum Ende 2012.
2013 war das zweite Jahr in Folge, in dem die Deutsche
Bank in das künftige Wachstum der Bank sowie in die
weitere Verbesserung ihrer Kontrollen investiert und
gleichzeitig laufende rechtliche und regulatorische Themen
adressiert hat. Umsetzungskosten in Verbindung mit dem
Operational
Excellence
(OpEx)
Programm
sowie
Aufwendungen für Rechtsstreitigkeiten haben die
finanziellen Ergebnisse in 2013 beeinflusst.
Die Erträge sanken 2013 gegenüber dem Vorjahr um 5 %
auf 31,9 Mrd €. Der Rückgang war hauptsächlich auf CB&S
sowie auf leicht niedrigere Erträge in GTB und NCOU
zurückzuführen. In PBC hingegen blieben die Erträge nahezu
unverändert, und in DeAWM stiegen sie. Die
zinsunabhängigen Aufwendungen lagen bei 28,4 Mrd € und
waren damit um 9 % niedriger als im Vorjahr. Dies
reflektiert signifikante Kostenreduktionen sowie einen
erheblichen Rückgang der Wertminderungen auf Geschäftsoder Firmenwerte und immaterielle Vermögenswerte im
Vergleich zu 2012. Die Kostenreduktionen beinhalteten
einen Rückgang des Personalaufwands in 2013 um 1,2 Mrd
€ (9 %) gegenüber dem Wert des Vorjahres, was auf einen
niedrigeren Personalaufwand aus variabler Vergütung sowie
auf die anhaltende Implementierung des OpEx-Programms
zurückzuführen ist. In den zinsunabhängigen Aufwendungen
waren in 2013 signifikante Kosten für Rechtsstreitigkeiten in
Höhe von 3,0 Mrd € (2012: 2,5 Mrd €) enthalten.
Vor diesem Hintergrund hat die Deutsche Bank 2013 einen
Jahresüberschuss in Höhe von 681 Mio € (2012: 316 Mio €)
und ein Ergebnis vor Steuern in Höhe von 1,5 Mrd €
(2012: 814 Mio €) erzielt.
Trotz der gegenüber dem Vorjahr niedrigeren Erträge
verbesserte sich die Aufwand-Ertrag-Relation von 92,5 % in
2012 auf 89,0 % in 2013. Diese Entwicklung reflektiert die
anhaltende
Reduzierung
von
Zinsunabhängigen
Aufwendungen als Ergebnis der laufenden Implementierung
des OpEx-Programms.
Durch das OpEx-Programm wurden 2013 Einsparungen von
2,1 Mrd € erzielt, die damit den angestrebten Wert von
1,6 Mrd € übertrafen. Die kumulativen Umsetzungskosten
lagen bei 1,8 Mrd € (davon 1,3 Mrd € in 2013 und 0,5 Mrd €
in 2012).
Angesichts des höheren Ergebnisses nach Steuern, der
Ausgabe neuer Aktien, der beschleunigten Kapitalbildung
und der Maßnahmen zum Risikoabbau erreichte die Tier-1Kapitalquote (ohne Hybridinstrumente) der Deutschen Bank
gemäß Basel 2.5 zum 31. Dezember 2013 das Niveau von
12,8 % und die Tier-1-Kapitalquote stieg auf das Niveau von
16,9 %. Die Pro-forma-Common Equity Tier-1-Kapitalquote
gemäß CRR/CRD 4 (Vollumsetzung) stieg von 7,8 % im
Vorjahr auf 9,7 % zum Jahresende 2013 ebenfalls erheblich,
was auf deutliche Fortschritte bei der Umsetzung von
Maßnahmen zur Portfoliooptimierung und den Abbau von
Risiken aus nicht zum Kerngeschäft gehörenden Aktivitäten
zurückzuführen ist.
Die angepasste Pro-forma-CRR/CRD 4-Verschuldungsquote
betrug 3,1 % zum 31. Dezember 2013, basierend auf einer
Verschuldungsposition von 1.445 Mrd € zum Jahresende
2013.
52
Zum Jahresende 2013 beliefen sich die risikogewichteten
Aktiva (RWA) gemäß Basel 2.5 auf 300 Mrd €, im Vergleich
zu 334 Mrd € zum Jahresende 2012. Dieser Rückgang
resultierte vor allem aus Managementmaßnahmen zum
Risikoabbau. 2013 erreichte die Deutsche Bank eine
Reduzierung der RWA gemäß Pro-forma-CRR/CRD
4-Vollumsetzung auf 350 Mrd €.
Geschäftsjahr 2012 und 2011
Trotz des schwierigen Umfelds im Jahr 2012 blieben die
Erträge der Deutschen Bank stabil und stiegen in fast jedem
Geschäftsbereich der Kernbank (CB&S, GTB, DeAWM und
PBC). Die Risikovorsorge im Kreditgeschäft ging im
Vergleich zum Jahr 2011 zurück. Im zweiten Halbjahr 2012
schlugen sich jedoch vor allem zahlreiche Maßnahmen zur
Umsetzung der Strategie 2015+ im Ergebnis nieder. Diese
Maßnahmen führten im Wesentlichen zu einem Anstieg der
zinsunabhängigen
Aufwendungen
gegenüber
dem
Gesamtjahr 2011. Sie beinhalteten Umsetzungskosten im
Zusammenhang mit dem Operational Excellence Programm
(OpEx) und der Integration der Postbank von insgesamt
0,9 Mrd €. Im zweiten Halbjahr 2012 hat die Deutsche Bank
Einsparungen von 0,4 Mrd € erzielt und damit die Ziele des
OpEx zum Jahresende 2012 erreicht. Die Aufwendungen
beinhalteten zudem Wertminderungen auf den Geschäftsoder
Firmenwert
und
sonstige
immaterielle
Vermögenswerte (1,9 Mrd €) sowie signifikante
Aufwendungen für Rechtsstreitigkeiten (2,2 Mrd €). Darüber
hinaus war das Ergebnis 2012 durch weitere spezifische
Positionen von 1,3 Mrd € belastet. Dazu zählten unter
anderem Aufwendungen im Zusammenhang mit der
Restrukturierung des Firmenkundengeschäfts in den
Niederlanden, andere Nettoaufwendungen und Effekte aus
dem Risikoabbau in der NCOU.
Vor diesem Hintergrund belief sich der Jahresüberschuss
2012 auf 316 Mio €, gegenüber 4,3 Mrd € in 2011 und das
Ergebnis vor Steuern auf 814 Mio €, verglichen mit 5,4 Mrd €
in 2011. Bereinigt um die vorgenannten Wertminderungen auf
den Geschäfts- oder Firmenwert und sonstige immaterielle
Vermögenswerte
sowie
die
Aufwendungen
für
Rechtsstreitigkeiten hätte das Ergebnis vor Steuern für das
Gesamtjahr 2012 4,9 Mrd € betragen. Dazu trug die Kernbank
6,5 Mrd € bei.
Im Jahr 2012 hat die Deutsche Bank die Höhe der variablen
Vergütung überprüft und eine Vergütungskommission
eingesetzt. Obgleich der Personalaufwand in 2012
gegenüber dem Vorjahr um 3 % anstieg, ging hierdurch als
erstes Ergebnis die variable Vergütung im Vergleich zu 2011
um 11 % zurück. Des Weiteren hat die Deutsche Bank den
Anteil der aufgeschobenen Vergütung von 61 % auf 47 %
reduziert und dadurch die Belastungen für die Ergebnisse
der kommenden Jahre verringert.
Insgesamt hat die Deutsche Bank ihre Kapitalposition,
Liquiditätsreserven und Refinanzierungsquellen in 2012
deutlich gestärkt. Dank des Jahresüberschusses sowie der
beschleunigten
Kapitalbildung
und
des
gezielten
Risikoabbaus einschließlich der Maßnahmen in der NCOU
stieg die Tier-1-Kapitalquote der Deutschen Bank gemäß
Basel 2.5 zum 31. Dezember 2012 auf das Niveau von
15,1 % und die Tier-1-Kernkapitalquote (nunmehr Tier-1Kapitalquote ohne Hybridinstrumente) auf 11,4 %. Die Proforma-Tier-1-Kernkapitalquote gemäß Basel 3 (volle
53
Umsetzung), die im Jahr 2011 unter 6 % lag, erhöhte sich
ebenfalls deutlich auf 7,8 % und lag damit über dem
veröffentlichten Ziel von 7,2 %. Dies ist auf eine
erfolgreiche Portfoliooptimierung, den Abbau von Risiken
aus nicht zum Kerngeschäft gehörenden Aktivitäten sowie
Modell- und Prozessverbesserungen zurückzuführen.
Am Jahresende 2012 beliefen sich die risikogewichteten
Aktiva auf 334 Mrd €, im Vergleich zu 381 Mrd € am
Jahresende 2011. Dieser Rückgang resultierte vor allem aus
Managementmaßnahmen zum Risikoabbau des Geschäfts
der Deutschen Bank. Im zweiten Halbjahr 2012 konnte die
Deutsche Bank die Pro-forma-risikogewichteten-AktivaÄquivalente gemäß Basel 3 um 80 Mrd € reduzieren, wobei
das veröffentlichte Ziel auf 90 Mrd € bis zum 31. März 2013
lautet.
Die Liquiditätsreserven lagen zum 31. Dezember 2012 bei
über 230 Mrd €, einschließlich der von der Postbank AG
gehaltenen Reserven, die sich zum 31. Dezember 2012 auf
über 25 Mrd € beliefen (31. Dezember 2011: 223 Mrd €
ohne Postbank).
B.8
Ausgewählte wesentliche Proforma-Finanzinformationen
Entfällt. Es müssen keine Pro-forma Finanzinformationen
dargestellt werden.
B.9
Gewinnprognosen oder
–schätzungen
Entfällt. Es liegen keine Gewinnprognosen oder -schätzungen
vor.
B.10
Beschränkungen im
Entfällt. Die Konzernabschlüsse für die Geschäftsjahre 2013,
2012 und 2011 und der Jahresabschluss für 2013 wurden
Bestätigungsvermerk zu den
historischen Finanzinformationen von KPMG geprüft und mit einem uneingeschränkten
Bestätigungsvermerk versehen.
B.11
Nicht ausreichendes
Entfällt. Die Gesellschaft ist der Ansicht, dass der Deutsche
Geschäftskapital, um bestehende Bank-Konzern über ausreichendes Geschäftskapital verfügt,
Anforderungen zu erfüllen
um seine Zahlungsverpflichtungen für mindestens die
nächsten zwölf Monate zu erfüllen.
Abschnitt C – Wertpapiere
C.1
Art und Gattung der
Wertpapiere,
Wertpapierkennung
Sämtliche Aktien der Gesellschaft werden nach der Satzung
der Gesellschaft (die „Satzung“) als Namensaktien
ausgegeben. Alle Aktien der Gesellschaft, einschließlich der
in diesem Angebot (das „Angebot“) angebotenen Aktien (die
„Neuen Aktien“), sind Aktien derselben Gattung.
International Securities Identification Number (ISIN)
Neue Aktien: DE0005140008
Bezugsrechte: DE000A11QV10
Wertpapier-Kenn-Nummer (WKN)
Neue Aktien: 514000
Bezugsrechte: A11QV1
Börsenkürzel
DBK (deutsche Wertpapierbörsen)
DB (New York Stock Exchange)
C.2
Währung der
Wertpapieremission
Euro.
C.3
Zahl der ausgegebenen und voll
eingezahlten Aktien
Das Grundkapital der Bank beträgt zum Datum dieses
Prospekts 2.763.343.733,76 € und ist in 1.079.431.146 auf
den Namen lautende Stammaktien ohne Nennbetrag
(Stückaktien) und voller Gewinnanteilberechtigung ab dem
1. Januar 2014 eingeteilt. Sämtliche Aktien sind vollständig
eingezahlt.
54
Nennwert pro Aktien bzw.
Angabe, dass die Aktien keinen
Nennwert haben
Jede auf den Namen lautende Stammaktien ohne
Nennbetrag (Stückaktie) hat einen anteiligen Betrag am
Grundkapital der Bank von 2,56 € je Stückaktie.
C.4
Mit den Wertpapieren
verbundene Rechte
Jede Aktie der Gesellschaft einschließlich der Neuen Aktien
gewährt in der Hauptversammlung der Gesellschaft
(„Hauptversammlung“) eine Stimme. Beschränkungen des
Stimmrechts bestehen nicht. Alle Aktien sind mit voller
Gewinnanteilberechtigung ab dem 1. Januar 2014
ausgestattet. Für den Fall, dass die Gesellschaft aufgelöst
wird, wird das nach der Berichtigung der Verbindlichkeiten
verbleibende Vermögen der Gesellschaft gemäß § 271 AktG
nach den Anteilen am Grundkapital unter den Aktionären
verteilt. Aktionären steht ein Bezugsrecht im Hinblick auf
neue Aktien zu, die im Rahmen künftiger Kapitalerhöhungen
ausgegeben werden, mit Ausnahme von Kapitalerhöhungen
aus bedingtem Kapital, oder wenn das Bezugsrecht durch
Beschluss der Hauptversammlung oder, soweit durch die
Hauptversammlung ermächtigt, durch Beschluss des
Vorstands der Gesellschaft („Vorstand“) mit Zustimmung des
Aufsichtsrats
der
Gesellschaft
(„Aufsichtsrat“)
ausgeschlossen wurde.
C.5
Beschränkungen für die freie
Übertragbarkeit der
Wertpapiere
Entfällt. Die Aktien der Gesellschaft sind frei übertragbar.
C.6
Börsenzulassung
Die Zulassung der Neuen Aktien zum regulierten Markt der
Frankfurter Wertpapierbörse mit gleichzeitiger Zulassung zum
Teilbereich
des
regulierten
Markts
mit
weiteren
Zulassungsfolgepflichten (Prime Standard) an der Frankfurter
Wertpapierbörse sowie zum regulierten Markt der
Wertpapierbörsen Berlin, Düsseldorf, Hamburg, Hannover,
München und Stuttgart wird voraussichtlich am 6. Juni 2014
beantragt werden. Der Zulassungsbeschluss wird am oder
um den 24. Juni 2014 erwartet. Die Aufnahme des
Börsenhandels und die Einbeziehung der Neuen Aktien in die
bestehende Notierung an den deutschen Wertpapierbörsen
wird am oder um den 25. Juni 2014 erwartet. Zeitgleich soll
die Einbeziehung der Neuen Aktien in die bestehende
Notierung an der New York Stock Exchange erfolgen.
C.7
Dividendenpolitik
Die Deutsche Bank AG hat in den vergangenen Jahren
Dividenden gezahlt und beabsichtigt, auch in Zukunft
Dividenden an ihre Aktionäre zu zahlen. Die Gesellschaft wird
jedoch möglicherweise zukünftig Dividenden nicht in Höhe
der in den vergangenen Jahren ausgeschütteten Dividenden
zahlen. Sollte die Gesellschaft nicht profitabel sein, wird sie
möglicherweise überhaupt keine Dividenden zahlen. Sollte
die Gesellschaft die Anforderungen an das regulatorische
Kapital oder die Bilanzierungsgrundsätze des HGB nicht
erfüllen, kann die BaFin die Ausschüttung von Dividenden
aussetzen oder beschränken.
Abschnitt D – Risiken
Anleger sollten sich sorgfältig mit den nachfolgenden zusammengefassten Risikofaktoren sowie den
anderen in dem Prospekt enthaltenen Informationen befassen, bevor sie ihre Entscheidung über den
Erwerb von Aktien oder Bezugsrechten der Gesellschaft treffen. Wenn sich eines oder mehrere der
beschriebenen Risiken verwirklichen, könnte dies wesentliche nachteilige Auswirkungen auf die
Vermögens-, Finanz- und Ertragslage der Deutschen Bank oder auf den Börsenpreis der Aktien oder
Bezugsrechte der Deutsche Bank AG haben. Der Börsenpreis der Aktien oder Bezugsrechte der
Gesellschaft könnte auf Grund der Realisierung jedes einzelnen dieser Risiken erheblich fallen, und Anleger
könnten ihr investiertes Kapital teilweise oder vollständig verlieren. Die beschriebenen Risiken sind nicht die
55
einzigen Risiken, denen die Deutsche Bank ausgesetzt ist. Weitere Risiken, die der Gesellschaft
gegenwärtig nicht bekannt sind oder von der Gesellschaft gegenwärtig nicht als wesentlich betrachtet
werden, könnten ebenfalls den Geschäftsbetrieb der Gesellschaft oder des Deutsche Bank-Konzerns
beeinträchtigen und wesentliche nachteilige Auswirkungen auf die Geschäftstätigkeit und die Vermögens-,
Finanz- und Ertragslage der Gesellschaft oder des Deutsche Bank-Konzerns haben. Die Reihenfolge, in der
die Risiken aufgeführt werden, enthält keine Aussage über die Wahrscheinlichkeit ihres Eintritts oder über
das Ausmaß ihrer wirtschaftlichen Auswirkungen oder Bedeutung
D.1
Zentrale Risiken des Emittenten
oder seiner Branche
• Als globale Investmentbank mit einer bedeutenden
Privatkundenbasis unterliegt das Geschäft der Deutschen
Bank wesentlich den
Einflüssen der globalen
makroökonomischen Bedingungen sowie der Situation an
den Finanzmärkten. In den vergangenen Jahren waren
Banken allgemein, darunter auch die Deutsche Bank,
einer nahezu dauerhaften Belastungsprobe ihrer
Geschäftsmodelle und –aussichten ausgesetzt.
• Eine verhaltene Erholung der Weltwirtschaft und fortgesetzt
herausfordernde
Marktund
geopolitische
Rahmenbedingungen wirken sich weiterhin nachteilig auf
die Finanz- und Ertragslage in einigen Geschäftsbereichen
der Deutschen Bank aus, während zugleich ein anhaltendes
Niedrigzinsumfeld sowie der Wettbewerb in der
Finanzdienstleistungsbranche zu einer Verringerung der
Margen in vielen Geschäftsbereichen der Deutschen Bank
geführt haben. Sollten diese Bedingungen anhalten oder
sich verschlechtern, könnte die Deutsche Bank Änderungen
an ihrem Geschäftsmodell für erforderlich halten.
• Die Deutsche Bank war direkt von der europäischen
Staatsschuldenkrise betroffen und wird möglicherweise
weiterhin
von
ihr
betroffen
sein,
was
zu
Wertminderungen im Hinblick auf ihre Positionen in
Staatsschulden europäischer oder weiterer Länder führen
kann. Die von der Deutschen Bank zur Minderung des
Ausfallrisikos staatlicher Kreditnehmer eingegangenen
Credit
Default
Swaps
können
diese
Verluste
möglicherweise nicht ausgleichen.
• Aufsichtsrechtliche
und
politische
Maßnahmen
europäischer Regierungen in Reaktion auf die
Staatsschuldenkrise reichen möglicherweise nicht aus,
um eine Ausbreitung der Krise oder den Austritt einer
oder
mehrerer
Mitgliedstaaten
aus
der
Währungsgemeinschaft langfristig zu verhindern. Ein
Zahlungsverzug oder –ausfall oder der Austritt eines oder
mehrerer Mitgliedstaaten aus dem Euro könnte
unvorhersehbare Folgen für das Finanzsystem und die
wirtschaftliche Gesamtlage haben und könnten zu einem
rückläufigen Geschäftsvolumen, zu Abschreibungen von
Vermögenswerten
und
zu
Verlusten
in
allen
Geschäftsbereichen der Deutschen Bank führen. Die
Fähigkeit der Deutschen Bank, sich vor diesen Risiken zu
schützen, ist begrenzt.
• Die Deutsche Bank benötigt fortlaufend Liquidität, um ihre
Geschäftsaktivitäten zu refinanzieren. In Phasen
marktweiter
oder
unternehmensspezifischer
Liquiditätsengpässe kann sie daher Beeinträchtigungen
erleiden. Sie ist dabei auch dem Risiko ausgesetzt, dass
ihr keine Liquidität zur Verfügung gestellt wird, selbst
wenn ihr zugrunde liegendes Geschäft weiterhin stabil ist.
• Aufsichtsrechtliche Reformen, die zur Adressierung von
Schwachstellen
im
Finanzsektor
erlassen
oder
56
vorgeschlagen wurden, haben, in Verbindung mit einer
allgemein
verschärften
Überprüfung
durch
Aufsichtsbehörden, zu einer erheblichen Unsicherheit für
die Deutsche Bank geführt und können sich nachteilig auf
ihr Geschäft sowie ihre Fähigkeit, ihre strategischen Pläne
umzusetzen, auswirken.
• Aufsichtsrechtliche und gesetzliche Änderungen werden
die
Deutsche
Bank
verpflichten,
höhere
Eigenkapitalanforderungen zu erfüllen und können zu
erheblichen Beeinträchtigungen ihres Geschäftsmodells
und des Wettbewerbsumfelds führen. Sofern im Markt
die Ansicht entstünde, dass die Deutsche Bank
möglicherweise nicht in der Lage sein könnte, ihre
Kapitalanforderungen mit einem angemessenen Puffer zu
erfüllen, oder dass sie über die Anforderungen hinaus
Kapital vorhalten müsse, könnte dies die Wirkung dieser
Faktoren auf die Geschäftstätigkeit und die Ergebnisse
der Deutschen Bank noch verstärken.
• Das zunehmend strikter werdende regulatorische Umfeld,
dem die Deutsche Bank unterliegt, verbunden mit
beträchtlichen Ausgaben im Zusammenhang mit
Rechtsstreitigkeiten und aufsichtlichen Maßnahmen und
Sanktionen, kann es der Deutschen Bank erschweren,
ihre
Kapitalquoten
oberhalb
der
von
Regulierungsbehörden verlangten oder vom Markt
erwarteten Werte zu halten.
• Neu erlassene Vorschriften in den Vereinigten Staaten,
jüngste Gesetzgebung in Deutschland sowie Vorschläge
für EU-weite Regelungen im Hinblick auf das Verbot des
Eigenhandels oder seine Trennung vom Einlagengeschäft
können das Geschäftsmodell der Deutschen Bank
wesentlich beeinträchtigen.
• Europäische Gesetzgebungsvorhaben und die deutsche
Gesetzgebung im Hinblick auf die Sanierung und
Abwicklung von Banken und Investmentfirmen können zu
aufsichtsrechtlichen Konsequenzen führen, welche die
Geschäftstätigkeit der Deutschen Bank einschränken und
zu höheren Refinanzierungskosten führen können.
• Weitere infolge der Finanzkrise verabschiedete oder
vorgeschlagene
aufsichtsrechtliche
Reformen
–
beispielsweise umfangreiche neue Vorschriften zum
Derivate-Geschäft, Bankenabgaben oder eine mögliche
Finanztransaktionssteuer – können die Betriebskosten der
Deutschen Bank erheblich steigern und negative
Auswirkungen auf ihr Geschäftsmodell haben.
• Widrige Marktverhältnisse, ein historisch niedriges
Preisniveau, Volatilität sowie Zurückhaltung bei Investoren
haben in der Vergangenheit erhebliche und nachteilige
Auswirkungen auf die Umsätze und Erträge der
Deutschen Bank gehabt und können möglicherweise auch
in Zukunft derartige Auswirkungen haben, insbesondere in
den Bereichen Investmentbanking und Brokerage sowie
anderen
provisionsoder
gebührenabhängigen
Geschäftsbereichen. Infolgedessen hat die Deutsche
Bank in der Vergangenheit erhebliche Verluste aus ihren
Handels- und Investmentaktivitäten erlitten und wird
möglicherweise auch in Zukunft Verluste erleiden.
• Seit die Deutsche Bank im Jahr 2012 ihre Strategie 2015+
veröffentlichte, sind die Markt- und makroökonomischen
57
Bedingungen sowie das regulatorische Umfeld sehr viel
anspruchsvoller geworden als ursprünglich erwartet. In
der Folge hat die Deutsche Bank ihre Ziele aktualisiert, um
diesen anspruchsvollen Bedingungen gerecht zu werden.
Sollte die Deutsche Bank nicht in der Lage sein, ihre
aktualisierte Strategie erfolgreich umzusetzen, kann sie
möglicherweise ihre finanziellen Ziele nicht erreichen oder
sie könnte Verluste erleiden, geringe Erträge erzielen oder
eine Schwächung ihrer Kapitalbasis erfahren, und ihr
Aktienkurs könnte erheblich und nachteilig beeinträchtigt
werden.
• Die Deutsche Bank ist in einem in hohem und
zunehmendem
Maße
regulierten
und
für
Rechtsstreitigkeiten anfälligen Umfeld tätig, wodurch sie
potenziell Schadensersatzsprüchen und anderen Kosten,
deren Höhe erheblich und schwierig abzuschätzen sein
kann, sowie rechtlichen und regulatorischen Sanktionen
und einer Beeinträchtigung der Reputation ausgesetzt ist.
• Die Deutsche Bank ist im Zusammenhang mit der
Bestimmung von Referenzzinssätzen (Interbank Offered
Rates) derzeit sowohl Gegenstand branchenweiter
aufsichtsrechtlicher und strafrechtlicher Untersuchungen
als auch Partei zivilrechtlicher Klagen. Aufgrund einer
Reihe von Unwägbarkeiten in diesem Zusammenhang,
einschließlich in Bezug auf das damit verbundene hohe
Aufsehen und die Vergleichsverhandlungen anderer
Banken, ist der Ausgang dieser Verfahren unvorhersehbar
und kann wesentliche und nachteilige Auswirkungen auf
die Finanz- und Ertragslage sowie die Reputation der
Deutschen Bank haben.
• Die Deutsche Bank ist derzeit Gegenstand von
Untersuchungen einer Reihe von Aufsichtsbehörden im
Zusammenhang mit der Manipulation von Devisenkursen.
Die sich aus diesen Untersuchungen für die Deutsche
Bank ergebenden finanziellen Risiken könnten wesentlich
sein, und auch die Reputation der Deutschen Bank könnte
dadurch wesentlich beeinträchtigt werden.
• Eine Reihe von Regulierungsbehörden haben die
Deutsche Bank um Auskunft im Hinblick auf
Transaktionen mit der Monte dei Paschi di Siena ersucht
oder führen diesbezüglich Untersuchungen durch. Der
Umfang des sich aus diesen Angelegenheiten für die
Deutsche Bank ergebenden finanziellen Risikos könnte
erheblich sein, und die Reputation der Deutschen Bank
könnte beeinträchtigt werden.
• Regulierungsbehörden in den Vereinigten Staaten
untersuchen, ob die Abwicklung bestimmter U.S. DollarZahlungsanweisungen für Personen aus Staaten, die
U.S.-Embargobestimmungen unterlagen, die von der
Deutschen Bank in der Vergangenheit durchgeführt
wurden, im Einklang mit U.S.-Bundesrecht und dem
Recht
einzelner
U.S.-Bundesstaaten
stand.
Der
letztendliche Ausgang dieser Untersuchungen ist nicht
vorhersehbar
und
kann
wesentliche
nachteilige
Auswirkungen auf die Finanz- und Ertragslage sowie die
Reputation der Deutschen Bank haben.
• Die Deutsche Bank sieht sich vertraglichen Ansprüchen
und Rechtsstreitigkeiten im Zusammenhang mit ihrem
U.S.-amerikanischen
Hypothekendarlehensgeschäft
ausgesetzt,
die
wesentliche
und
nachteilige
Auswirkungen auf ihr Geschäftsergebnis oder ihre
Reputation haben können.
58
• Die Deutsche Bank ist auch außerhalb ihres klassischen
Kreditgeschäfts
Kreditrisiken
ausgesetzt,
die
in
wesentlichem Umfang zu den Kreditrisiken aus ihrem
klassischen Bankkreditgeschäft hinzukommen.
• Infolge von Veränderungen des beizulegenden Zeitwerts
(Fair Value) ihrer Finanzinstrumente hat die Deutsche
Bank Verluste erlitten und kann in Zukunft weitere
Verluste erleiden.
• Ungeachtet bestehender Grundsätze, Verfahren und
Methoden zur Überwachung von Risiken ist die Deutsche
Bank unerkannten und nicht vorhergesehenen Risiken
ausgesetzt, die zu erheblichen Verlusten führen können.
• Operationelle Risiken können das Geschäft der Deutschen
Bank beeinträchtigen.
• Die Betriebssysteme der Deutschen Bank sind
zunehmend Risiken im Hinblick auf Cyber-Angriffe und
sonstige
Internetkriminalität
ausgesetzt,
die
zu
erheblichen Verlusten der Daten von Kunden und Klienten
führen, die Reputation der Deutschen Bank schädigen
und zu aufsichtsrechtlichen Sanktionen und finanziellen
Verlusten führen können.
• Der Umfang des Clearing-Geschäfts der Deutschen Bank
setzt sie erhöhten Gefahren erheblicher Verluste aus,
sollten
ihre
diesbezüglichen
Systeme
nicht
ordnungsgemäß funktionieren.
• Die Deutsche Bank könnte Schwierigkeiten haben,
Akquisitionsmöglichkeiten
zu
identifizieren
und
umzusetzen. Sowohl die Durchführung als auch das
Absehen von Akquisitionen können die Ertragslage und
den Aktienkurs der Deutschen Bank erheblich
beeinträchtigen.
• Die Auswirkungen der Übernahme der Deutsche
Postbank AG können erheblich von den Erwartungen der
Deutschen Bank abweichen.
• Der Deutschen Bank könnte es nur unter Schwierigkeiten
gelingen, nicht zu ihrem Kerngeschäft zählende
Vermögenswerte zu vorteilhaften Preisen oder überhaupt
zu verkaufen, und die Deutsche Bank kann unabhängig
von Marktentwicklungen wesentliche Verluste in
Zusammenhang mit diesen Vermögenswerten und
weiteren Investments erleiden.
• Der intensive Wettbewerb sowohl auf dem deutschen
Heimatmarkt als auch den internationalen Märkten der
Deutschen Bank könnte ihre Erträge und Profitabilität
wesentlich beeinträchtigen.
• Transaktionen mit Gegenparteien in Ländern, die vom
U.S.-amerikanischen
Außenministerium
als
terrorismusfördernde Staaten eingestuft werden, oder mit
Personen,
gegen
die
U.S.-amerikanische
Wirtschaftssanktionen gerichtet sind, können dazu führen,
dass potenzielle Kunden und Investoren keine Geschäfte
mit der Deutschen Bank eingehen oder nicht in ihre
Wertpapiere investieren. Sie können zudem die
Reputation der Deutschen Bank schädigen oder zu
behördlichen Maßnahmen führen, die sich wesentlich und
nachteilig auf das Geschäft der Deutschen Bank
auswirken können.
59
D.3
Zentrale Risiken der
Wertpapiere
• Der Aktienkurs der Deutsche Bank AG war und kann
weiterhin volatil sein.
• Der Aktienbesitz von Aktionären, die nicht an diesem
Angebot teilnehmen, wird erheblich verwässert.
• Die Beteiligung der Aktionäre könnte bei zukünftigen
Kapitalmaßnahmen erheblich verwässert werden.
• Wenn das Angebot nicht durchgeführt wird, oder wenn
der Aktienkurs der Deutsche Bank AG stark fällt, können
die Bezugsrechte entfallen oder wertlos werden.
• Es ist nicht sicher, dass sich ein Bezugsrechtshandel
entwickelt, und die Bezugsrechte können höheren
Kursschwankungen unterliegen als die Aktien der
Deutsche Bank AG.
• Es kann sein, dass die Deutsche Bank AG in künftigen
Geschäftsjahren keine Dividenden zahlt, sei es, dass sie
keinen ausschüttungsfähigen Bilanzgewinn erzielt, oder
sei es aus anderen Gründen.
Abschnitt E – Angebot
E.1
Gesamtnettoerlöse und
geschätzte Gesamtkosten des
Angebots, einschließlich der
geschätzten Kosten, die dem
Anleger vom Emittenten oder
Anbieter in Rechnung gestellt
werden
Der Bruttoemissionserlös aus dem Angebot beläuft sich unter
der Annahme, dass alle Neuen Aktien zum Bezugspreis von
22,50 € je Neuer Aktie bezogen werden, auf 6.746 Mio € vor
Kosten, Provisionen und Gebühren. Die Gesellschaft rechnet
mit Übernahmeprovisionen und anderen Angebotskosten in
Höhe von insgesamt maximal ca. 124 Mio €, einschließlich
der
Übernahmeund
Managementprovision
der
Konsortialbanken in Höhe von maximal ca. 119 Mio €. Diese
von der Gesellschaft zu tragenden Kosten werden vom
Bruttoemissionserlös abgezogen. Unter der Annahme des
Bezugs bzw. der Platzierung aller Neuen Aktien zum
Bezugspreis erhielte die Gesellschaft aus dem Verkauf der
Neuen Aktien damit einen Nettoemissionserlös vor Steuern in
Höhe von rund 6.622 Mio €.
E.2a
Gründe für das Angebot,
Zweckbestimmung der Erlöse,
geschätzte Nettoerlöse
Die
Deutsche
Bank
beabsichtigt,
durch
den
Nettoemissionserlös des Angebots ihre regulatorische
Kapitalisierung weiter zu stärken sowie ein Polster im
Hinblick auf zukünftige regulatorische Unsicherheiten und
von der Deutschen Bank derzeit nicht vorhergesehene
künftige Herausforderungen vorzuhalten. Die Deutsche Bank
plant auch, einen Teil des Emissionserlöses für gezielte
Investitionen zu nutzen, um in der Lage zu sein, Chancen
wahrzunehmen, die sie in ihrem gesamten Geschäftsbereich
als vorhanden ansieht. Zum Datum des Prospekts hat sich
die Deutsche Bank noch nicht auf eine konkrete Allokation
des Emissionserlöses festgelegt.
Der von der Gesellschaft erzielte Nettoemissionserlös vor
Steuern beläuft sich voraussichtlich auf insgesamt ca. 6.622
Mio €.
E.3
Angebotskonditionen
Gegenstand des Angebots
Gegenstand des Angebots (das „Angebot“) sind 299.841.985
neue, auf den Namen lautende Stammaktien ohne
Nennbetrag (Stückaktien) der Deutsche Bank AG (die „Neuen
Aktien”), jeweils mit einem rechnerischen Anteil am
Grundkapital von 2,56 € je Aktie und mit voller
Gewinnanteilberechtigung ab dem 1. Januar 2014.
Die Neuen Aktien werden aus der am 5. Juni 2014 vom
Vorstand mit Zustimmung des Präsidialausschusses des
Aufsichtsrats, an den die Beschlusszuständigkeit zuvor
delegiert worden war, vom selben Tag beschlossenen
60
Kapitalerhöhung gegen Bareinlagen aus genehmigtem Kapital
stammen. Unter Ausnutzung der Ermächtigungen in § 4
Absatz 6 und 7 der Satzung der Deutsche Bank AG
(Genehmigte Kapitalia) hat der Vorstand der Deutsche
Bank AG am 5. Juni 2014 mit Zustimmung des
Präsidialausschusses des Aufsichtsrats, an den die
Beschlusszuständigkeit zuvor delegiert worden war, vom
selben
Tag
beschlossen,
das
Grundkapital
von
2.763.343.733,76
€
um
767.595.481,60
€
auf
3.530.939.215,36 € durch die Ausgabe von 299.841.985
Neuen Aktien gegen Bareinlagen zu einem Bezugspreis von
€ 22,50 je Neuer Aktie zu erhöhen. Dabei ist den Aktionären
ein Bezugsrecht einzuräumen. Die Neuen Aktien werden den
Aktionären in einem Bezugsverhältnis von 18 : 5 angeboten.
Es können damit 5 Neue Aktien zum Bezugspreis für 18 alte
Aktien bezogen werden. Der Bezug einer einzelnen Aktie
oder eines ganzzahligen Vielfachen hiervon ist möglich.
Hinsichtlich eines Spitzenbetrages von bis zu 100.000 Neuen
Aktien
wurde
das
Bezugsrecht
der
Aktionäre
ausgeschlossen. Dabei ergibt sich die Anzahl Neuer Aktien,
für die das Bezugsrecht bezüglich für von der Gesellschaft
gehaltene alte Aktien ausgeschlossen wurde, aus dem
Bestand an eigenen Aktien am 5. Juni 2014 abends
(Trennungstermin).
Bezugsangebot
Die Konsortialbanken haben sich auf Grundlage eines am
18. Mai 2014 abgeschlossenen Aktienübernahmevertrags (der
„Aktienübernahmevertrag”) unter bestimmten Bedingungen
verpflichtet, die Neuen Aktien zu zeichnen, zu übernehmen
und sie (mit Ausnahme des Spitzenbetrags) den Aktionären
der Bank im Rahmen eines mittelbaren Bezugsrechts
entsprechend dem Bezugsverhältnis zum Bezugspreis je
Neuer Aktie im Wege öffentlicher Angebote in der
Bundesrepublik Deutschland, dem Vereinigten Königreich von
Großbritannien und Nordirland („Vereinigtes Königreich“ oder
„U.K.“) und den Vereinigten Staaten von Amerika („Vereinigte
Staaten“ oder „USA“) zum Bezug anzubieten (das
„Bezugsangebot“). Die Neuen Aktien werden den Aktionären
der Gesellschaft in Kanada im Rahmen eines Bezugsangebots
gemäß einem kanadischen Angebotsdokument durch zum
Verkauf in Kanada berechtigte Personen angeboten. Die
Neuen Aktien, die nicht aufgrund des Bezugsangebots
bezogen worden sind, sowie der vom Bezugsrecht der
Aktionäre ausgenommene Spitzenbetrag werden im Wege
eines öffentlichen Angebots in den Vereinigten Staaten und
im Rahmen von Privatplatzierungen Anlegern in der
Bundesrepublik Deutschland und bestimmten anderen
Ländern (ausgenommen Japan) zum Erwerb angeboten.
Das Angebot kann
abgebrochen werden.
unter
bestimmten
Umständen
Bezugspreis
Der Bezugspreis je bezogener Neuer Aktie beträgt 22,50 €.
Er ist spätestens am 24. Juni 2014 zu entrichten.
Bezugsverhältnis
Entsprechend dem Bezugsverhältnis von 18 : 5 können auf
jeweils 18 alte Aktien der Gesellschaft 5 Neue Aktien zum
Bezugspreis bezogen werden.
Bezugsfrist
Die Bezugsfrist wird voraussichtlich vom 6. Juni 2014 bis zum
24. Juni 2014 (jeweils einschließlich) laufen („Bezugsfrist”).
61
Ausübung des Bezugsrechts
Die Bezugsrechte, die auf die bestehenden und sich in
Girosammelverwahrung befindenden Aktien der Gesellschaft
entfallen, werden am 5. Juni 2014, abends, durch die
Clearstream Banking AG, Mergenthalerallee 61, 65760
Eschborn, Deutschland, den Depotbanken automatisch
eingebucht.
Die Aktionäre werden durch Veröffentlichung des
Bezugsangebots – im Bundesanzeiger voraussichtlich am
5. Juni 2014 und in der Frankfurter Allgemeine Zeitung sowie
in der Börsen-Zeitung voraussichtlich am 6. Juni 2014 –
aufgefordert, ihr Bezugsrecht auf die Neuen Aktien zur
Vermeidung des Ausschlusses von der Ausübung ihres
Bezugsrechts in der Zeit vom 6. Juni 2014 bis einschließlich
24. Juni 2014 über ihre Depotbank bei einer der unten
genannten
Bezugsstellen
während
der
üblichen
Geschäftszeiten auszuüben. Nicht fristgemäß ausgeübte
Bezugsrechte verfallen wertlos. Ein Ausgleich für nicht
ausgeübte Bezugsrechte erfolgt nicht.
Bezugsstellen sind die deutschen Niederlassungen der
Deutsche Bank AG.
Bezugsrechtshandel
Im Zusammenhang mit dem Angebot der Neuen Aktien
findet ein börslicher Handel der Bezugsrechte bzw. von
Bruchteilen von Bezugsrechten statt. Die Bezugsrechte
(ISIN DE000A11QV10) für die Neuen Aktien werden in der
Zeit vom 6. Juni 2014 bis einschließlich 20. Juni 2014 im
regulierten Markt (XETRA und XETRA Frankfurt Spezialist) an
der
Frankfurter
Wertpapierbörse
gehandelt.
Die
Bezugsrechte werden auch an der New York Stock Exchange
gehandelt. Darüber hinaus beabsichtigt die Gesellschaft,
keinen Antrag auf Bezugsrechtshandel an einer anderen
Wertpapierbörse zu stellen. Die Bezugsstellen sind bereit,
den börsenmäßigen An- und Verkauf von Bezugsrechten
nach Möglichkeit zu vermitteln. Ein Ausgleich für nicht
ausgeübte Bezugsrechte findet nicht statt. Nach Ablauf der
Bezugsfrist verfallen die nicht ausgeübten Bezugsrechte
wertlos. Vom 6. Juni 2014 an werden die bestehenden
Aktien der Deutsche Bank AG im regulierten Markt an der
Frankfurter Wertpapierbörse und an den Wertpapierbörsen
Berlin, Düsseldorf, Hamburg, Hannover, München und
Stuttgart sowie an der New York Stock Exchange „ex
Bezugsrecht” notiert.
Verbriefung und Lieferung
Die Neuen Aktien werden in einer Globalurkunde verbrieft,
die bei der Clearstream Banking AG und bei dem unter der
Global Share-Struktur von der Deutsche Bank AG für die USA
ernannten Sub-Agent hinterlegt wird. Ein Anspruch der
Aktionäre auf Verbriefung ihrer Anteile sowie etwaiger
Gewinnanteil- und Erneuerungsscheine ist satzungsgemäß
ausgeschlossen, soweit seine Gewährung nicht nach den
Regeln erforderlich ist, die an einer Börse gelten, an der die
Aktien zugelassen sind. Die Neuen Aktien sind mit den
gleichen Rechten ausgestattet wie alle anderen Aktien der
Gesellschaft und vermitteln keine darüber hinausgehenden
Rechte oder Vorteile.
Die im Rahmen des Bezugsangebots bezogenen Neuen
Aktien werden voraussichtlich am oder um den 25. Juni
2014, und die im Rahmen der unten beschriebenen
62
Privatplatzierungen erworbenen Neuen Aktien werden nach
Abschluss der Privatplatzierungen, voraussichtlich am oder
um den 27. Juni 2014, durch Girosammeldepotgutschrift zur
Verfügung gestellt, es sei denn, die Bezugsfrist wurde
verlängert.
Verwertung nicht bezogener Aktien/Privatplatzierungen
Die Neuen Aktien, die nicht aufgrund des Bezugsangebots
bezogen worden sind, sowie der vom Bezugsrecht der
Aktionäre ausgenommene Spitzenbetrag werden im Wege
eines öffentlichen Angebots in den Vereinigten Staaten und
im Rahmen von Privatplatzierungen Anlegern in der
Bundesrepublik Deutschland und bestimmten anderen
Ländern (ausgenommen Japan) zum Erwerb angeboten.
E.4
Wesentliche Interessen an dem
Angebot, einschließlich
potenzieller Interessenkonflikte
(soweit vorhanden)
In Zusammenhang mit dem Angebot stehen die
Konsortialbanken in einer Vertragsbeziehung mit der
Gesellschaft. Bei erfolgreicher Durchführung des Angebots
erhalten die Konsortialbanken von der Gesellschaft eine
Provision. Einige Konsortialbanken und ihre jeweiligen
verbundenen Unternehmen haben im Rahmen von
Geschäftsbeziehungen zur Deutschen Bank bestimmte
Beratungs- oder andere Dienstleistungen, für die sie
marktübliche Gebühren und Auslagen erhalten haben, für die
Deutsche Bank erbracht und werden dies voraussichtlich
auch in Zukunft tun. Auch die Gesellschaft hat für einige
Konsortialbanken oder ihre jeweiligen verbundenen
Unternehmen
bestimmte
Beratungsoder
andere
Dienstleistungen, für die sie marktübliche Gebühren und
Auslagen erhalten hat, erbracht und wird dies voraussichtlich
auch in Zukunft tun. Die Gesellschaft und einige
Konsortialbanken sowie ggf. deren verbundene Unternehmen
waren ferner an weiteren Transaktionen untereinander und
unter Beteiligung dritter Parteien im Bank- und
Finanzierungsgeschäft beteiligt, wie etwa im Emissions- oder
Kreditgeschäft sowie bei Handels- und Derivatetransaktionen.
Die Gesellschaft erwartet, dass sie und einige
Konsortialbanken auch in Zukunft Geschäftsbeziehungen wie
vorstehend beschrieben eingehen. Die Gesellschaft geht
daher davon aus, dass die Konsortialbanken ein Interesse an
der erfolgreichen Durchführung der Transaktion haben.
Vor dem Angebot erwarb die Paramount Services Holdings
Ltd., eine Investmentgesellschaft im witrschaftlichen
Eigentum und unter Kontrolle von Scheich Hamad Bin Jassim
Bin Jabor Al-Thani, 59.931.506 neue Aktien der Gesellschaft,
die im Rahmen einer Kapitalerhöhung ausgegeben wurden.
Im Zusammenhang mit ihrem Investment in die Gesellschaft
hat sich die Paramount Services Holdings Ltd. gegenüber der
Gesellschaft, auch zu Gunsten der Joint Bookrunners,
verpflichtet, im Zusammenhang mit dem Angebot sämtliche
der ihren Aktien der Gesellschaft zugeteilten Bezugsrechte
auszuüben und in diesem Umfang Neue Aktien zu zeichnen.
Angesichts des vorstehend beschriebenen Investments und
der beschriebenen Verpflichtung ist es das Verständnis der
Gesellschaft, dass die Paramount Services Holdings Ltd. und
Scheich Hamad Bin Jassim Bin Jabor Al-Thani ein Interesse
an der erfolgreichen Durchführung des Angebots haben.
63
E.5
Personen, die die Wertpapiere
zum Kauf anbieten, Lock-up
Vereinbarungen
Deutsche Bank AG und die Konsortialbanken bieten die
Neuen Aktien zum Kauf an.
Lock-up Vereinbarung
In einem Zeitraum vom 18. Mai 2014 bis sechs Monate nach
dem ersten Handelstag der Neuen Aktien an der Frankfurter
Wertpapierbörse, den Wertpapierbörsen Berlin, Düsseldorf,
Hamburg, Hannover, München und Stuttgart sowie der New
York Stock Exchange wird die Gesellschaft ohne vorherige
schriftliche Zustimmung der UBS Limited, die nicht unbillig
verweigert oder verzögert werden darf, und im Rahmen des
aktienrechtlich Zulässigen:
(i)
keine
satzungsmäßige
Kapitalerhöhung ausüben;
Ermächtigung
zur
(ii)
mit Ausnahme der in der Einladung zur ordentlichen
Hauptversammlung
2014
enthaltenen
Beschlussvorschläge der Hauptversammlung keinen
Vorschlag für eine Kapitalerhöhung oder die Begebung
von Finanzinstrumenten, die in Aktien der Gesellschaft
umgewandelt werden können oder mit Optionsrechten
auf Aktien der Gesellschaft ausgestattet sind, zum
Beschluss vorlegen (wobei Ermächtigungen gemäß
§ 202 oder § 221 Abs. 2 Aktiengesetz (AktG) und die
Schaffung eines damit verbundenen bedingten Kapitals
ausgenommen sind);
(iii) keine Aktien der Gesellschaft oder Wertpapiere, die in
solche Aktien umgewandelt, für die solche Aktien
bezogen oder die in solche Aktien umgetauscht werden
können, direkt oder indirekt anbieten, verpfänden,
zuteilen, ausgeben (sofern nicht durch anwendbares
Recht vorgeschrieben), verkaufen, sich zu deren Verkauf
verpflichten, keine Option für deren Kauf verkaufen, sich
zu deren Kauf verpflichten, keine Option für deren
Verkauf kaufen, keine Option, kein Recht und keinen
Optionsschein zu deren Kauf gewähren, oder
anderweitig zu übertragen oder veräußern und keine
Swaps oder sonstigen Vereinbarungen eingehen, durch
die das wirtschaftliche Risiko des Eigentums an solchen
Aktien ganz oder teilweise an eine andere Partei
übertragen wird, unabhängig davon, ob die Abwicklung
einer solchen vorstehend beschriebenen Transaktion
durch Lieferung von Aktien oder anderen Wertpapieren,
in bar oder auf sonstige Weise erfolgen soll.
Die vorstehenden Beschränkungen gelten nicht für (i) die auf
der
Grundlage
des
Aktienübernahmevertrages
zu
verkaufenden Neuen Aktien, (ii) von der Gesellschaft
ausgegebene
oder
noch
auszugebende
bedingte
Kapitalinstrumente (einschließlich CRR/CRD 4 Additional-Tier1 („AT1“)-Instrumente), die (aa) zwingend oder freiwillig in
Aktien der Gesellschaft umgewandelt werden können oder
(bb) mit einer Option, einem Recht oder einem Optionsschein
zum Kauf von bestehenden oder neuen Aktien ausgestattet
sind oder (cc) ein Genussrecht gewähren oder (dd) andere
Instrumente, die sich auf die unter (aa) bis (cc) genannten
Instrumente beziehen oder diese kombinieren, jeweils
unabhängig davon, ob den Aktionären der Gesellschaft
Bezugsrechte eingeräumt werden, (iii) die Ausgabe oder
anderweitige Verteilung oder Zuteilung von Aktien der
Gesellschaft oder Optionen auf Aktien der Gesellschaft oder
64
anderen Instrumenten in Bezug auf Aktien der Gesellschaft an
Führungskräfte
(einschließlich
Vorstandsund
Aufsichtsratsmitgliedern) oder Mitarbeiter der Gesellschaft
oder einer ihrer Tochtergesellschaften im Rahmen eines
üblichen Aktienoptions-, Aktienbeteiligungs- oder sonstigen
Mitarbeiteranreizplans für Führungskräfte (einschließlich
Vorstands- und Aufsichtsratsmitgliedern) und/oder Mitarbeiter
oder anderweitig in Bezug auf die Aktienvergütung von
Führungskräften
(einschließlich
Vorstandsund
Aufsichtsratsmitgliedern) oder Mitarbeitern der Gesellschaft,
(iv) Verkäufe eigener Aktien (oder Derivate-Transaktionen in
Bezug darauf), die in Übereinstimmung mit den üblichen
Treasury-Aktivitäten der Gesellschaft durchgeführt werden,
(v) Absicherungs-, Marketmaking- und Makleraktivitäten im
üblichen Verlauf der Handelsaktivitäten der Gesellschaft oder
ihrer verbundenen Unternehmen und (vi) Transaktionen der
Gesellschaft oder ihrer verbundenen Unternehmen zur
Ausführung von Kundenaufträgen.
E.6
Betrag und Prozentsatz der aus
dem Angebot resultierenden
unmittelbaren Verwässerung
Um
Zweifel
auszuschließen:
Die
vorstehenden
Beschränkungen gelten nicht für die vor diesem Angebot
erfolgte Ausgabe neuer Aktien der Gesellschaft an die
Paramount Services Holdings Ltd. Es besteht keine Lock-up
Vereinbarung zwischen Paramount Services Holdings Ltd.
und der Gesellschaft im Zusammenhang mit dem Angebot.
Der in der nach IFRS aufgestellten verkürzten Bilanz
ausgewiesene Buchwert des den Deutsche Bank-Aktionären
zurechenbaren Eigenkapitals belief sich zum 31. März 2014
auf 55.753 Mio € und damit auf 54,69 € je Aktie der
Gesellschaft, ermittelt auf Grundlage der Anzahl der zum
31. März 2014 ausgegebenen 1.019.499.640 Stückaktien der
Gesellschaft. Auf angepasster Basis, die die Ausgabe von
59.931.506 neuen Aktien an Paramount Services Holdings
Ltd. zu einem Platzierungspreis von 29,20 € je Aktie vor
diesem Angebot berücksichtigt, hätte der Buchwert des den
Deutsche Bank-Aktionären zurechenbaren Eigenkapitals
57.491 Mio € betragen, entsprechend 53,26 € je Aktie der
Gesellschaft (ermittelt auf Grundlage der 1,079,431,146
Aktien der Gesellschaft nach der Vorabplatzierung der neuen
Aktien an Paramount Services Holdings Ltd. und unter
Berücksichtigung des Abzugs von Kosten, Provisionen und
Gebühren im Zusammenhang mit der Vorabplatzierung und
der Begebung der AT1-Anleihen sowie der aus der Begebung
der AT1-Anleihen resultierenden und in die Kapitalrücklage
eingebuchten Agios).
Auf dieser Grundlage hätte nach der Durchführung der
Kapitalerhöhung
von
2.763.343.733,76 €
um
767.595.481,60 € auf 3.530.939.215,36 € durch die Ausgabe
299.841.985 Neuer Aktien gegen Bareinlagen im
Zusammenhang mit diesem Angebot, die voraussichtlich am
oder um den 23. Juni 2014 im Handelsregister der
Gesellschaft eingetragen wird, und zu einem Bezugs- bzw.
Platzierungspreis von 22,50 € je Neuer Aktie, und nach Abzug
der geschätzten Kosten, Provisionen und Auslagen des
Angebots in maximaler Höhe von 113 Mio € nach Steuern,
der in der nach IFRS aufgestellten Bilanz ausgewiesene
Buchwert des den Aktionären der Gesellschaft zurechenbaren
Eigenkapitals zum 31. März 2014, 64.124 Mio € bzw. 46,49 €
je Aktie betragen (berechnet auf der Grundlage der Anzahl der
1.379.273.131 Aktien der Gesellschaft nach der Durchführung
der Kapitalerhöhung im Zusammenhang mit dem Angebot).
Dies entspricht einer Verwässerung des Eigenkapitals der
Gesellschaft um 6,77 € bzw. 12,7 % je Aktie für die
bisherigen Aktionäre. Für die Erwerber von Neuen Aktien führt
65
dies zu einem indirekten Wertzuwachs von 23,99 € bzw.
106,6 % je Aktie, da das angepasste den Aktionären der
Gesellschaft zurechenbare Eigenkapital je Aktie den Bezugsbzw. Platzierungspreis von 22,50 € je Neuer Aktie um diesen
Betrag bzw. Prozentsatz übersteigt.
E.7
66
Betrag und Prozentsatz der
unmittelbaren Verwässerung
für den Fall, dass die Aktionäre
ihre Bezugsrechte nicht
ausüben
Übt ein Aktionär keines seiner Bezugsrechte aus, wird der
von diesem Aktionär gehaltene Anteil am Grundkapital der
Gesellschaft sowie an den Stimmrechten gehaltene Anteil
um 21,7 % verwässert. Ohne Berücksichtigung des
wirtschaftlichen Werts des Bezugsrechts, ergäbe sich eine
Kapitalverwässerung des Aktionärs von 6,77 € je Aktie.
Schätzung der Ausgaben, die
dem Anleger vom Emittenten
oder Anbieter in Rechnung
gestellt werden
Entfällt. Anlegern werden keine Auslagen von der
Gesellschaft oder den Konsortialbanken in Rechnung gestellt.
Anleger müssen jedoch solche Gebühren selbst tragen, die
ihnen ihre eigene depotführende Bank für den Kauf und das
Halten von Wertpapieren in Rechnung stellt.
RISK FACTORS
Investors should carefully consider the following risks, in addition to the other information contained in this
Prospectus, before making investment decisions involving shares or subscription rights of Deutsche Bank
AG. If one or more of the risks described in this Prospectus materializes, this may have a material adverse
impact on the net assets, financial condition and results of operations of Deutsche Bank or on the quoted
market price of the shares or subscription rights of Deutsche Bank AG. The quoted market price of the
shares or subscription rights of the Company may decline significantly due to the realization of any of these
individual risks, and investors may lose their invested capital in part or in full. The risks described are not the
only risks that Deutsche Bank faces. Other risks of which the Company is currently unaware or does not
currently consider material may also affect the Company’s or the Deutsche Bank Group’s business
operations and may have a material adverse impact on the business, net assets, financial condition and
results of operations of the Company or the Deutsche Bank Group. The order in which the risks are
presented does not have any significance in regard to the likelihood of their occurrence nor the significance
or severity of their economic impact.
Risks Related to the Business of Deutsche Bank
As a global investment bank with a large private client franchise, Deutsche Bank’s businesses are
materially affected by global macroeconomic and financial market conditions. Over the last several
years, banks, including Deutsche Bank, have experienced nearly continuous stress on their business
models and prospects.
Persistent doubt about the sustainability of the global economic recovery continues to materially affect
Deutsche Bank’s businesses, particularly through its negative impact on client activity levels. Although the
intervention by the European Central Bank (generally referred to as the “ECB”) in financial markets appears
to have forestalled further iterations of the euro crisis and somewhat improved the macroeconomic and
market environment in the eurozone in 2013, economic growth in Europe remains weak, and many
European economies continue to face structural challenges as unemployment and structural debt levels
remain high. In the United States, uncertainties concerning the political stalemate over fiscal policy and
potential changes to the U.S. Federal Reserve’s program to make large purchases of long-term financial
assets to stimulate the U.S. economy (referred to as “quantitative easing”) have repeatedly re-emerged to
endanger a still tepid and fragile economic recovery. A further risk Deutsche Bank considers is a potentially
disruptive U.S. monetary tightening. Emerging markets experienced volatility in 2013 amid concerns that
the level of foreign investment inflows would decline substantially as the liquidity-enhancing measures in
the United States and Europe are tapered down. Against this background and these uncertainties,
Deutsche Bank has observed subdued client activity in a number of its businesses, with its credit flow
businesses affected in particular by the potential tapering of quantitative easing, even as the ultra-low
interest rate environment has also put pressure on Deutsche Bank’s margins in several traditional banking
sectors. These challenges have been exacerbated as Deutsche Bank continues to face headwinds from the
continuing intensification of the regulatory environment as well as a continued high level of litigation and
enforcement matters that have given rise to reputational issues and have put further pressure on
profitability and returns.
The challenging economic and market conditions over recent years have led Deutsche Bank to recalibrate
its business model in response to the effects of the global financial crisis, the European sovereign debt
crisis and the gradual discontinuation of the active intervention of central banks in the financial markets.
Despite initiatives to lessen Deutsche Bank’s exposure to businesses it has decided to cut back or exit,
Deutsche Bank still has substantial remaining exposures in some asset classes (as it reduces these asset
classes in a deliberate way it believes is economically best for it) and thus continues to be exposed to any
future deterioration in prices for the remaining positions.
If uncertainty about the macroeconomic environment persists or worsens, these trends may also be
difficult for Deutsche Bank to counter. More generally, if economic conditions in the eurozone remain at
their current subdued levels, or worsen, or if economic growth stagnates elsewhere, Deutsche Bank’s
results of operations may be materially and adversely affected. Continued quantitative easing in response to
this may lead to a continuation of the current environment of low interest rates and margin compression,
which may also affect Deutsche Bank’s business and financial position. By contrast, any decision by the
U.S. Federal Reserve to further reduce quantitative easing or by central banks more generally to tighten
their monetary policy if economies continue to improve could have a material adverse effect on perceptions
of liquidity in the financial system and on the global economy more generally, and may adversely affect
Deutsche Bank’s business and financial position. In particular, Deutsche Bank may in the future be unable
to offset the potential negative effects on its profitability of the current macroeconomic and market
conditions through performance in its other businesses.
67
A muted global economic recovery and persistently challenging market and geopolitical conditions
continue to negatively affect Deutsche Bank’s results of operations and financial condition in some
of its businesses, while a continuing low interest environment and competition in the financial
services industry have compressed margins in many of Deutsche Bank’s businesses. If these
conditions persist or worsen, Deutsche Bank could determine that it needs to make changes to its
business model.
Although economic conditions slowly continue to improve in Deutsche Bank’s core markets of Europe and
the United States, economic growth appears to have slowed down during the first quarter of 2014, while
heightened geopolitical tensions, such as those in connection with Ukraine and Russia, along with slower
growth in China, have the potential to further undermine confidence in the global economic recovery. Some
of Deutsche Bank’s businesses, especially some businesses in its CB&S division, continue to be materially
affected by these economic and geopolitical uncertainties and by related declines in client activity levels, as
well as by the protracted low interest rate environment. Reflecting this negative environment and Deutsche
Bank’s recent operating performance, Moody’s placed Deutsche Bank’s long-term debt and deposit ratings
on review for possible downgrade on May 6, 2014. Like many in the investment banking industry, Deutsche
Bank continues to rely on its trading and markets businesses as a primary source of profit. However, these
“flow” businesses, in particular its fixed income securities franchise, continue to face an extremely
challenging environment caused by cyclical uncertainty about the low interest rate environment, central
bank intervention in markets and the gradual cessation thereof and overall sluggish economic growth.
These negative effects have been exacerbated by long-term structural trends driven by regulation and
competition that have further compressed Deutsche Bank’s margins in many of its businesses. Should a
combination of these factors continue to lead to reduced margins and subdued activity levels in Deutsche
Bank’s trading and markets business over the longer term, this could reflect structural challenges that may
lead Deutsche Bank to consider changes to aspects of its business model.
Deutsche Bank has been and may continue to be directly affected by the European sovereign debt
crisis, and it may be required to take impairments on its exposures to the sovereign debt of
European or other countries. The credit default swaps into which Deutsche Bank has entered to
manage sovereign credit risk may not be available to offset these losses.
Starting in late 2009, the sovereign debt markets of the eurozone began to undergo substantial stress as
the markets began to perceive the credit risk of a number of countries as having increased. A number of
measures taken by European governments and regulators have appeared to stem the most negative
effects of the crisis at least over the short term, in particular through the loosening of central bank funding
and the restructuring of Greece’s sovereign indebtedness. However, there is still substantial uncertainty
surrounding the sovereign debt crisis, especially in the light of the weak economic recovery in the eurozone
outside Germany, and the risk still exists that the sovereign debt crisis may reignite and its effects spread
to the core of the eurozone.
The effects of the sovereign debt crisis have been especially evident in the financial sector, as a large
portion of the sovereign debt of eurozone countries is held by European financial institutions, including
Deutsche Bank. As of March 31, 2014, Deutsche Bank had a direct sovereign credit risk exposure of
€ 3.4 billion to Italy, € 724 million to Spain, € (38) million to Ireland, € 119 million to Portugal and
€ 41 million to Greece. Despite the current apparent abatement of the crisis, it remains uncertain whether
Greece or other eurozone sovereigns, such as Spain, Italy, Portugal and Cyprus, will be able to manage their
debt levels in the future. In the future, negotiations or exchanges similar to the Greek debt restructuring in
2012 could take place with respect to the sovereign debt of these or other affected countries. The outcome
of any negotiations regarding changed terms (including reduced principal amounts or extended maturities)
of sovereign debt may result in additional impairments of assets on Deutsche Bank’s balance sheet. Any
negotiations are highly likely to be subject to political and economic pressures that Deutsche Bank cannot
control, and Deutsche Bank is unable to predict their effects on the financial markets, on the greater
economy or on itself.
In addition, any restructuring of outstanding sovereign debt may result in potential losses for Deutsche
Bank and other market participants that are not covered by payouts on hedging instruments that they have
entered into to protect against the risk of default. These instruments largely consist of credit default swaps,
generally referred to as CDSs, pursuant to which one party agrees to make a payment to another party if a
credit event (such as a default) occurs on the identified underlying debt obligation. A sovereign restructuring
that avoids a credit event through voluntary write-downs of value may not trigger the provisions in CDSs
Deutsche Bank has entered into, meaning that its exposures in the event of a write-down could exceed the
exposures it previously viewed as its net exposure after hedging. Additionally, even if the CDS provisions
are triggered, the amounts ultimately paid under the CDSs may not correspond to the full amount of any
loss Deutsche Bank incurs. Deutsche Bank also faces the risk that its hedging counterparties have not
68
effectively hedged their own exposures and may be unable to provide the necessary liquidity if payments
under the instruments they have written are triggered. This may result in systemic risk for the European
banking sector as a whole and may negatively affect Deutsche Bank’s business and financial position.
Regulatory and political actions by European governments in response to the sovereign debt crisis
may not be sufficient to prevent the crisis from spreading or to prevent departure of one or more
member countries from the common currency over the long term. The default or departure of any
one or more countries from the euro could have unpredictable consequences on the financial
system and the greater economy, potentially leading to declines in business levels, write-downs of
assets and losses across Deutsche Bank’s businesses. Deutsche Bank’s ability to protect itself
against these risks is limited.
Although the severity of the European sovereign debt crisis has abated somewhat over the short term, the
eurozone continues to face structural challenges that may, in the future, contribute to renewed instability in
its sovereign debt markets and in the economy more generally. Any deterioration of the sovereign debt
market in the eurozone or in Eastern Europe could quickly change the economic and financial situation
throughout the eurozone and affect even the financially more stable countries in the eurozone, including
Germany. Substantial doubt remains whether actions taken by European policymakers will be sufficient to
contain the crisis over the longer term. In particular, the European Stability Mechanism, generally referred to
as the ESM, the special purpose vehicle created by the European Union to combat the sovereign debt
crisis, may prove to be ineffective in a crisis situation. In addition, the austerity programs introduced by a
number of countries across the eurozone in response to the sovereign debt crisis may continue to dampen
economic growth over the medium and longer terms. As economic weakness continues in the eurozone,
questions about the long-term growth prospects of the eurozone countries could exacerbate their
difficulties in refinancing their sovereign debt as it comes due, further increasing pressure on other
eurozone governments.
In addition, the possibility exists that one or more members of the eurozone may default on their debt
obligations or leave the common currency, resulting in the reintroduction of one or more national
currencies. Should a eurozone country conclude it must exit the common currency, the resulting need to
reintroduce a national currency and restate existing contractual obligations could have unpredictable
financial, legal, political and social consequences, leading not only to significant losses on sovereign debt
but also on private debt in that country. Given the highly interconnected nature of the financial system
within the eurozone, and the high levels of exposure Deutsche Bank has to public and private
counterparties around Europe, Deutsche Bank’s ability to plan for such a contingency in a manner that
would reduce its exposure to non-material levels is likely to be limited. If the overall economic climate
deteriorates as a result of one or more departures from the eurozone, Deutsche Bank’s business could be
adversely affected, and, if overall business levels decline or Deutsche Bank is forced to write down
significant exposures among its various businesses, it could incur substantial losses.
Deutsche Bank has a continuous demand for liquidity to fund its business activities. It may suffer
during periods of market-wide or firm-specific liquidity constraints, and liquidity may not be
available to it even if its underlying business remains strong.
Deutsche Bank is exposed to liquidity risk, which is the risk arising from its potential inability to meet all
payment obligations when they become due or only being able to meet them at excessive cost. Deutsche
Bank’s liquidity may become impaired due to a reluctance of its counterparties or the market to finance its
operations due to actual or perceived weaknesses in its businesses. Such impairments can also arise from
circumstances unrelated to Deutsche Bank’s businesses and outside its control, such as, but not limited to,
disruptions in the financial markets. For example, Deutsche Bank has experienced, as a result of the
European sovereign debt crisis in 2012, declines in the price of its shares and increases in the premium
investors must pay when purchasing CDSs on its debt. In addition, negative developments concerning
other financial institutions perceived to be comparable to Deutsche Bank and negative views about the
financial services industry in general have also recently affected Deutsche Bank. These perceptions have
affected the prices at which Deutsche Bank has accessed the capital markets to obtain the necessary
funding to support its business activities; should these perceptions worsen, Deutsche Bank’s ability to
obtain this financing on acceptable terms may be adversely affected. Among other things, an inability to
refinance assets on Deutsche Bank’s balance sheet or maintain appropriate levels of capital to protect
against deteriorations in their value could force Deutsche Bank to liquidate assets it holds at depressed
prices or on unfavorable terms, and could also force Deutsche Bank to curtail business, such as the
extension of new credit. This could have an adverse effect on Deutsche Bank’s business, financial condition
and results of operations.
As a result of funding pressures arising from the European sovereign debt crisis and the global economic
weakness more generally, there has been increased intervention by a number of central banks over the
69
past several years, in particular the ECB, and the U.S. Federal Reserve. In September 2012, the ECB
announced an unlimited sovereign bond buying program (referred to as the OMT Program) aimed at
keeping the borrowing costs of affected eurozone countries low through the purchase of their debt
instruments. In a court order dated January 14, 2014, the German Constitutional Court
(Bundesverfassungsgericht) has sought guidance from the Court of Justice of the European Union as to
whether the OMT Program is valid under European law. A decision finding that the OMT Program is
incompatible with European law could adversely affect the ability of the ECB to invoke the OMT Program
and negatively impact the stability of the eurozone. In addition to the OMT Program, the ECB agreed in
December 2011 and February 2012 to provide low-interest secured loans to European financial institutions
for up to three years. The U.S. Federal Reserve has expanded its provision of U.S. dollar liquidity to the
ECB, which the ECB has then made available to European banks. To date a number of financial institutions
have drawn on these funding sources to maintain or enhance their liquidity. The U.S. Federal Reserve has
also implemented a program referred to as “quantitative easing”, which is designed to keep long-term
interest rates low through substantial purchases of long-term financial assets from private institutions.
To the extent these incremental measures are curtailed or halted, this could adversely impact funding
markets for all European financial institutions, including Deutsche Bank, leading to an increase in funding
costs, or reduced funding supply, which could result in a reduction in business activity. In particular, any
decision by the U.S. Federal Reserve to discontinue quantitative easing further or by central banks more
generally to tighten their monetary policy will likely cause long-term interest rates to increase and
accordingly impact the costs of Deutsche Bank’s funding. In addition, negative perceptions concerning
Deutsche Bank’s business and prospects could develop as a result of large losses, changes of its credit
ratings, a general decline in the level of business activity in the financial services sector, regulatory action,
serious employee misconduct or illegal activity, as well as many other reasons outside Deutsche Bank’s
control and that it cannot foresee.
Since the start of the global financial crisis and continuing through the European sovereign debt crisis, the
major credit rating agencies have lowered Deutsche Bank’s credit ratings or placed them on review or
watch on multiple occasions. On December 15, 2011, Fitch Ratings announced that it was downgrading
Deutsche Bank’s long-term issuer default rating to A+ from AA-, on June 21, 2012, Moody’s Investor
Services announced it was downgrading Deutsche Bank’s long-term senior debt rating from Aa3 to A2, and
on July 2, 2013, Standard & Poor’s announced that it was downgrading Deutsche Bank’s long-term
counterparty credit rating to A from A+. On December 19, 2013, Moody’s affirmed Deutsche Bank’s longterm debt rating but moved the respective rating outlook from stable to negative and, on May 6, 2014,
Moody’s placed Deutsche Bank’s long-term debt and deposit ratings on review for possible downgrade. On
March 26, 2014, Fitch Ratings affirmed Deutsche Bank’s long-term issuer default rating but moved the
respective rating outlook from stable to negative. On April 30, 2014, Standard & Poor’s affirmed Deutsche
Bank’s long-term issuer default rating but moved the respective rating outlook from stable to negative.
Recent credit rating downgrades have not materially affected Deutsche Bank’s borrowing costs. However,
any future downgrade could materially affect its funding costs, although Deutsche Bank is unable to predict
whether this would be the case or the extent of any such effect. The effect would depend on a number of
factors including whether a downgrade affects financial institutions across the industry or on a regional
basis, or is intended to reflect circumstances specific to Deutsche Bank; any actions senior management
may take in advance of or in response to the downgrade; the willingness of counterparties to continue to do
business with Deutsche Bank; any impact of other market events and the state of the macroeconomic
environment more generally.
Additionally, under many of the contracts governing derivative instruments to which Deutsche Bank is a
party, a downgrade could require Deutsche Bank to post additional collateral, lead to terminations of
contracts with accompanying payment obligations for it or give counterparties additional remedies.
Deutsche Bank takes these effects into account in its liquidity stress testing analysis.
Regulatory reforms enacted and proposed in response to weaknesses in the financial sector,
together with increased regulatory scrutiny more generally, have created significant uncertainty for
Deutsche Bank and may adversely affect its business and ability to execute its strategic plans.
In response to the global financial crisis and the European sovereign debt crisis, governments, regulatory
authorities and others have made and continue to make proposals to reform the regulatory framework for
the financial services industry to enhance its resilience against future crises. Legislation has already been
enacted and regulations issued in response to some of these proposals. The regulatory framework for
financial institutions is likely to undergo further significant change. This creates significant uncertainty for
Deutsche Bank and the financial industry in general. The wide range of recent actions or current proposals
includes, among other things, provisions for more stringent regulatory capital and liquidity standards,
restrictions on compensation practices, special bank levies and financial transaction taxes, recovery and
resolution powers to intervene in a crisis including “bail-in” of creditors, the creation of a single supervisor
70
and a single resolution mechanism (“SRM”) within the eurozone, separation of certain businesses from
deposit taking, stress testing and capital planning regimes, heightened reporting requirements, and reforms
of derivatives, other financial instruments, investment products and market infrastructures. In addition,
regulatory scrutiny under existing laws and regulations has become more intense. The specific effects of a
number of new laws and regulations remain uncertain because the drafting and implementation of these
laws and regulations are still on-going, and may include, for example, material revisions to Deutsche Bank’s
risk-weighted assets calculation, changes in its deductions from its regulatory capital and the imposition of
extra capital charges to cover financial, market and operational risk. These requirements may be in addition
to regulatory capital buffers that may also be increased or be in addition to those already imposed on
Deutsche Bank and could themselves materially increase Deutsche Bank’s capital requirements.
Regulatory authorities have substantial discretion in how to regulate banks, and this discretion, and the
means available to the regulators, have been steadily increasing during recent years. Regulation may be
imposed on an ad hoc basis by governments and regulators in response to the ongoing or future crises, and
these may especially affect financial institutions such as Deutsche Bank that are deemed to be systemically
important. For example, exceptional and temporary capital ratios, such as the one mandated by the
European Council in October 2011, may be imposed very quickly.
In addition, the European Union is in the process of establishing a “banking union” consisting of Germany
and members of the eurozone, plus any other EU member states that choose to join. Beginning on
November 4, 2014, the ECB will become Deutsche Bank’s main prudential supervisor, and there is
uncertainty whether and to what extent this will result in a change to Deutsche Bank’s regulatory
environment.
In preparation for direct supervision, the ECB is conducting a comprehensive assessment of a sample of EU
banks covering at least 50 % of the national banking sector in each EU member state, including Deutsche
Bank. The comprehensive assessment, which is expected to be completed by the end of October 2014,
consists of (i) a supervisory risk assessment addressing key risks in the banks’ balance sheets, including
liquidity, leverage and funding, (ii) an asset quality review examining the asset side of the banks’ balance
sheets as of December 31, 2013, and (iii) a stress test, which is meant to complement the asset quality
review. The stress test will assess the resilience of a sample of eurozone banks, including Deutsche Bank,
under a common baseline and an adverse macro-economic scenario. The scenarios will cover the period
from 2014 through 2016 and be based upon consolidated year-end 2013 figures. The capital thresholds for
the baseline scenario will be 8 % of Common Equity Tier 1 capital and for the adverse scenario 5.5 % of
Common Equity Tier 1 capital. Substantial uncertainty currently exists with respect to the ECB’s
methodology for these exercises, and steps Deutsche Bank may be required to take in response to these
stress tests and asset quality assessments, or any failure by regulators to approve Deutsche Bank’s stress
test results and capital plans, could have a material adverse effect on Deutsche Bank’s operations, results
and future prospects. Some shortfalls that the stress test could reveal may demand the allocation of
Common Equity Tier 1 capital to cover them, placing further pressure on this key capital measure. The
outcome of the asset quality review may also impose higher provisions or additional capital requirements
on Deutsche Bank.
In addition, the regulators having jurisdiction over Deutsche Bank, including the German Federal Financial
Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, “BaFin”) and, in the future, the
ECB, have discretion to impose capital deductions on financial institutions for financial, market and
operational risks that are not otherwise recognized in risk-weighted assets or other surcharges depending
on the individual situation of the bank. Furthermore, any prospective changes in accounting standards, such
as those imposing stricter or more extensive requirements to carry assets at fair value, could also have
uncertain impacts on Deutsche Bank’s capital needs.
Regulatory and legislative changes will require Deutsche Bank to maintain increased capital and
may significantly affect its business model and the competitive environment. Any perceptions in the
market that Deutsche Bank may be unable to meet its capital requirements with an adequate buffer,
or that it should maintain capital in excess of the requirements, could intensify the effect of these
factors on Deutsche Bank’s business and results.
In December 2010, the Basel Committee on Banking Supervision published a set of comprehensive
changes to the capital adequacy framework, known as Basel 3, which have been implemented into
European Union law by a legislative package referred to as “CRD 4”. CRD 4 became effective on January 1,
2014, with some provisions being gradually phased in through 2019. CRD 4 contains, among other things,
detailed rules on regulatory banking capital, increased capital requirements and the introduction of additional
capital buffers (which will increase from year to year) as well as tightened liquidity standards and the
introduction of a leverage ratio not based upon risk weightings. Deutsche Bank expects to be subject to
additional capital buffers, including as a result of being designated a globally systemically important financial
institution, or “SIFI”.
71
Deutsche Bank may not have sufficient capital to meet these increasing regulatory requirements. This could
occur due to regulatory and other changes, such as the gradual phase out of Deutsche Bank’s hybrid capital
instruments as qualifying Additional Tier 1 (or AT1) capital, and due to any substantial losses it were to
incur, which would reduce its retained earnings, a component of Common Equity Tier 1 capital (which has
replaced Core Tier 1 capital now that CRD 4 has become effective), or due to a combination of these
factors. In addition, Deutsche Bank may be unable to replace its hybrid capital instruments as they are
being gradually phased out. As a result, Deutsche Bank’s future leverage ratio under CRR/CRD 4 may be
substantially lower than the adjusted pro forma CRR/CRD 4 leverage ratio it has published. This ratio
reflects, as of March 31, 2014, the € 10.0 billion of hybrid capital securities that continued to qualify under
the CRR/CRD 4 phase-in rules as of that date but that will be phased out of Deutsche Bank’s regulatory
capital.
If Deutsche Bank is unable to build up capital buffers as required by CRD 4, it may become subject to
restrictions on the pay-out of dividends, share buybacks and discretionary compensation payments. In
addition, any requirement to increase capital ratios could lead Deutsche Bank to adopt a strategy focusing on
capital preservation and creation over revenue generation and profit growth, in particular involving the
reduction in higher margin risk-weighted assets. If Deutsche Bank is unable to increase its capital ratios to
the regulatory minimum in such a case or by raising new capital through the capital markets, through the
reduction of risk-weighted assets or through other means, then it may be required to activate its group
recovery plan. If these actions or other private or supervisory actions do not restore capital buffers required
by CRD 4, and Deutsche Bank is at risk to become insolvent (which risk will be presumed if Deutsche Bank’s
capital and liquidity buffers fall below a certain level), Deutsche Bank may be resolved or restructured using
the regulatory powers under the 2010 German Restructuring Act (Restrukturierungsgesetz) and other laws,
including the law transposing into German law the European directive establishing a framework for the
recovery and resolution of credit institutions and investment firms, referred to as the RRD. This would
involve a significant restructuring of Deutsche Bank, to preserve the continuity of critical economic functions,
including the transfer of certain business activities to a bridge bank and the liquidation of the remaining
assets or a forced capital injection. This could lead to significant dilution of Deutsche Bank’s shareholders,
and regulators would likely impose additional operational and other limitations or obligations on Deutsche
Bank’s business as a result of entering resolution or restructuring.
In addition, in July 2013, U.S. federal bank regulators issued final rules implementing many elements of the
Basel 3 framework and other U.S. capital reforms.
A recently adopted rule on foreign banking organizations in the United States will also subject Deutsche
Bank’s U.S. operations to additional and more stringent risk-based and leverage capital requirements, liquidity
requirements, and other prudential requirements. On February 18, 2014, the U.S. Federal Reserve Board
adopted a rule that will impose enhanced prudential standards on Deutsche Bank’s U.S. operations,
potentially leading to higher capital and funding requirements for Deutsche Bank’s U.S. operations. The rule
will also require Deutsche Bank to organize virtually all of its U.S. subsidiaries under a top-tier U.S.
intermediate holding company that will be subject to U.S. capital requirements (including many elements of
the Basel 3 framework as implemented by rules issued by U.S. federal banking regulators in July 2013),
capital stress testing, U.S. liquidity buffer requirements and other enhanced prudential standards comparable
to those applicable to top-tier U.S. bank holding companies of a similar size. The rule requirements generally
take effect in July 2016. Existing bank holding company subsidiaries of foreign banking organizations, such
as Deutsche Bank Trust Corporation, will be subject to certain enhanced prudential standards beginning in
January 2015 until an intermediate holding company subject to enhanced prudential standards is formed or
designated. Deutsche Bank Trust Corporation will become subject to capital plan and stress testing
requirements on June 30, 2014. These various requirements could require Deutsche Bank to reduce assets
held in the United States, inject capital into or otherwise change the structure of its U.S. operations. To the
extent that Deutsche Bank is required to reduce operations in the United States or deploy capital in the
United States that could be deployed more profitably elsewhere, the rule could have an adverse effect on
Deutsche Bank’s business, financial condition and results of operations. In addition, the U.S. Federal Reserve
Board and other U.S. regulators issued for public comment in October 2013 a proposed rule that would
introduce a quantitative liquidity coverage ratio requirement on certain large banks and bank holding
companies. The comment period for this rule closed on January 31, 2014. The proposed liquidity coverage
ratio is broadly consistent with the Basel Committee’s revised Basel 3 liquidity rules, but is more stringent in
several important respects. The Federal Reserve Board has also stated that it intends, through future
rulemakings, to apply the Basel 3 liquidity coverage ratio and net stable funding ratio (“NSFR”) to the U.S.
operations of some or all large foreign banking organizations.
It is unclear whether such increased U.S. capital and other requirements as well as similar developments in
other jurisdictions could lead to a fragmentation of supervision of global banks that could adversely affect
Deutsche Bank’s reliance on regulatory waivers allowing it to meet capital adequacy requirements, large
72
exposure limits and certain organizational requirements on a consolidated basis only rather than also on a
non-consolidated basis. Should Deutsche Bank no longer be entitled to rely on these waivers, Deutsche
Bank would have to adapt and take the steps necessary in order to meet regulatory capital requirements and
other requirements on a consolidated as well as a non-consolidated basis, which could result also in
significantly higher cost.
Any increased capital requirements, including those described above, could have adverse effects on
Deutsche Bank’s business, financial condition and results of operations, as well as on perceptions in the
market of its stability, particularly if any such proposal becomes effective and results in Deutsche Bank’s
having to raise capital at a time when financial markets are distressed. If these regulatory requirements
must be implemented more quickly than currently foreseen, Deutsche Bank may decide that the quickest
and most reliable path to compliance is to reduce the level of assets on its balance sheet, dispose of
divisions or separate out certain activities or reduce or close down certain business lines. The effects on
Deutsche Bank’s capital raising efforts in such a case could be amplified due to the expectation that its
competitors, at least those subject to the same or similar capital requirements, would likely also be required
to raise capital at the same time. Moreover, some of Deutsche Bank’s competitors, particularly those
outside the European Union, may not face the same or similar regulations, which could put Deutsche Bank
at a competitive disadvantage.
In addition to these regulatory initiatives, market sentiment may encourage financial institutions such as
Deutsche Bank to maintain even more capital beyond regulatory-mandated minima, which could exacerbate
the effects on it described above or, if Deutsche Bank does not increase its capital to the encouraged
levels, could lead to the perception in the market that it is undercapitalized relative to its peers generally.
The increasingly stringent regulatory environment to which Deutsche Bank is subject, coupled with
substantial outflows in connection with litigation and enforcement matters, may make it difficult for
Deutsche Bank to maintain its capital ratios at levels above those required by regulators or expected
in the market.
Since 2008, governments, regulatory authorities and others have significantly tightened the prudential
regulation of the financial services industry. These changes and the general lack of international regulatory
coordination, including on implementation timetables, has created significant uncertainty for Deutsche
Bank, especially as regulatory authorities’ discretion in how to regulate banks has also substantially
increased in recent years. For example, the ECB is currently conducting stress tests on Deutsche Bank and
assessing the quality of its assets. Shortfalls that such stress tests and asset quality review could reveal
may demand the allocation of Common Equity Tier 1 capital to cover them, placing further pressure on this
key capital measure.
Apart from these ECB exercises, even though Deutsche Bank currently complies with minimum regulatory
capital rules under CRR/CRD 4, regulators may impose unexpected enhancements on Deutsche Bank, that
require it to hold capital in excess of the regulatory required minima (see the risk factor above entitled
“Regulatory reforms enacted and proposed in response to weaknesses in the financial sector, together
with increased regulatory scrutiny more generally, have created significant uncertainty for Deutsche Bank
and may adversely affect its business and ability to execute its strategic plans”).
In addition, the single resolution fund under the SRM is expected to have a target size of approximately
€ 55 billion (based upon 1% of deposits covered under the European deposit guarantee schemes directive),
of which approximately € 15 billion is expected to be contributed by German banks. On this basis,
Deutsche Bank believes its contributions over the coming eight years to the single resolution fund might be
substantial. Deutsche Bank also expects that the changes to the European deposit guarantee schemes
directive, which is currently pending publication, will, when transposed into German law, result in new
annual contributions to the German deposit protection guarantee scheme.
Against this backdrop, Deutsche Bank’s results of operation and financial condition have been negatively
affected in recent quarters by a large number of claims, disputes, legal proceedings and government
investigations. The extent of Deutsche Bank’s financial exposure to these and other matters could continue
to be material and could substantially exceed the level of provisions that it established for such litigation,
regulatory and similar matters. In this environment, compliance costs have also substantially increased.
As a result of the substantial uncertainties with respect to Deutsche Bank’s calculation of its capital
requirements and the potential outflows in respect of litigation and enforcement matters, Deutsche Bank
may, even after the addition to its capital that the shares being issued in this Offering will provide, find it
necessary or desirable to raise additional capital in the future to maintain capital levels at levels required by
its regulators or viewed by market participants as necessary for its businesses in comparison with its
international peers.
73
New rules in the United States, recent legislation in Germany and proposals in the European Union
regarding the prohibition of proprietary trading or its separation from the deposit-taking business
may materially affect Deutsche Bank’s business model.
On December 10, 2013, U.S. regulators released the final version of the rules implementing the “Volcker
Rule”, a regulatory provision required by the Dodd-Frank Wall Street Reform and Consumer Protection Act
of 2010 (“Dodd-Frank Act”). The final rules prohibit U.S. insured depository institutions and companies
affiliated with U.S. insured depository institutions (such as Deutsche Bank) from engaging in short-term
proprietary trading of certain securities, derivatives, commodity futures and options on these instruments,
for their own account. The final rules also impose limits on investments in, and other relationships with,
hedge funds or private equity funds. The Federal Reserve Board extended the end of the conformance
period for the Volcker Rule until July 21, 2015, by which time financial institutions subject to the rule must
have brought their activities and investments into compliance. During the conformance period, Deutsche
Bank will analyze the final rule, assess how it will affect its businesses and devise an appropriate
compliance strategy.
In addition, the German Act on the Separation of Risks and Recovery and Resolution Planning for Credit
Institutions and Banking Groups, referred to as the “Separation Act”, was promulgated in August 2013. The
Separation Act regulates the activities of banks that take deposits or other repayable funds from the public
and lend them for their own account (referred to as “CRR Banks”). CRR Banks will be required to transfer
certain activities deemed to be high risk to a financial trading institution, which may be established within
the same banking group, if certain independence requirements are met. Deutsche Bank will be required to
determine the scope of activities to be separated by July 1, 2015 in conjunction with the competent
authority, and will be required to implement separation by July 1, 2016. Such separation may result in
higher financing costs for the separated activities that could adversely affect Deutsche Bank’s business,
financial condition and results of operations. Moreover, it is yet unclear which business operations would be
required to be separated. The BaFin has been granted broad discretion in this respect.
On January 29, 2014, the European Commission published a draft Regulation on Structural Measures
Improving the Resilience of EU Banks and Transparency of the Financial Sector, referred to as the
“Proposed Regulation”, which, if enacted as proposed, would prohibit certain large banks from engaging in
proprietary trading in financial instruments and commodities and investing in hedge funds or other entities
that engage in proprietary trading, for the sole purpose of making a profit for its own account. The Proposed
Regulation would also grant supervisors broad powers to require these banks to separate certain activities
deemed to be high risk from other businesses, such as deposit-taking and lending. The Proposed
Regulation is currently being discussed at the European level and might overrule certain requirements set
out in the Separation Act at the national level.
The Volcker Rule, the Separation Act and the Proposed Regulation may have significant implications for the
future structure and strategy of the Group, and may increase the Group’s funding costs. This could
adversely affect Deutsche Bank’s business, financial condition and results of operations.
Proposed European legislation and German legislation regarding the recovery and resolution of
banks and investment firms may result in regulatory consequences that could limit Deutsche Bank’s
business operations and lead to higher refinancing costs.
The Separation Act contains, in addition to the rules relating to the separation of trading activities, rules on
the preparation of recovery and resolution plans for banks, such as Deutsche Bank, that are deemed
systemically important to the German economy. The Separation Act in particular grants additional powers to
the BaFin to eliminate impediments to a bank’s resolution. The BaFin’s exercise of these powers could
affect Deutsche Bank’s business activities or its legal or operational structure. The Separation Act preempts
in part the implementation into German law of the European directive establishing a framework for the
recovery and resolution of credit institutions and investment firms, referred to as the RRD, which has been
adopted by the European Parliament and the Council, but not yet published, and the SRM. The RRD, in
addition to the rules and requirements set forth in the Separation Act, provides for the power of the
resolution authority (in the case of Deutsche Bank, to be set up under the single European resolution
mechanism) to write down certain eligible unsecured liabilities, or to convert such liabilities into equity,
commonly referred to as “bail-in”. In order to facilitate these bail-in powers, which are expected to become
effective in Germany from January 1, 2015 onwards, banks may be required to include in their eligible
liabilities issued outside the EU conditions that recognize the powers to write down or convert debt. Similar
rules apply under the SRM, which to a large extent will be governed by the European regulation
establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain
investment firms in the framework of a Single Resolution Mechanism and a Single Bank Resolution Fund
that was adopted by the European Parliament on April 15, 2014. The bail-in powers and the described
conditions could result in increased refinancing costs. This could adversely affect Deutsche Bank’s
business, financial condition and results of operations.
74
Other regulatory reforms adopted or proposed in the wake of the financial crisis – for example,
extensive new regulations governing Deutsche Bank’s derivatives activities, bank levies or a
possible financial transaction tax – may materially increase Deutsche Bank’s operating costs and
negatively impact its business model.
On August 16, 2012, the EU Regulation on over-the-counter (“OTC”) derivatives, central counterparties and
trade repositories, referred to as EMIR, entered into force. While a number of the compliance requirements
introduced by EMIR already apply, the European Securities and Markets Authority is still in the process of
finalizing several of the implementing rules mandated by EMIR. EMIR introduced a number of
requirements, including clearing obligations for certain classes of OTC derivatives and various reporting and
disclosure obligations. Although some of the particular effects brought about by EMIR may not yet be
foreseeable, many of its elements may lead to changes which may negatively impact Deutsche Bank’s
profit margins, require it to adjust its business practices or increase its costs (including compliance costs).
The Markets in Financial Instruments Directive (which will comprise a regulation (MiFIR) and a directive
(MiFID)), which was adopted by the European Parliament on April 15, 2014 and which is expected to come
into force mid this year, will also introduce a trading obligation for those OTC derivatives which are subject
to mandatory clearing and which are sufficiently standardized. Deutsche Bank will also be impacted by the
BCBS-IOSCO final minimum standards for margin requirements for non-centrally cleared derivatives, for
which enabling legislation exists in the EU (EMIR) but where much of the impact depends on how these
requirements are implemented in detailed rule-making. These will not be fully phased in until 2019.
In the United States, the Dodd-Frank Act of 2010 has numerous provisions that may affect Deutsche
Bank’s operations. Under the Dodd-Frank Act, Deutsche Bank and certain of its affiliates and subsidiaries
registered as swap dealers and became subject to extensive oversight by the U.S. Commodity Futures
Trading Commission. Regulation of swap dealers by the U.S. Commodity Futures Trading Commission
imposes numerous corporate governance, business conduct, capital, margin, reporting, clearing, execution
and other regulatory requirements on Deutsche Bank. It also requires Deutsche Bank to apply U.S. rules in
some circumstances to transactions conducted outside of the United States. Although the coverage of
EMIR and the Dodd Frank Act is in many ways similar, certain swaps may be subject to both regulatory
regimes to a significant extent. The new requirements under the Dodd-Frank Act may adversely affect
Deutsche Bank’s derivatives business and make it less competitive, especially as compared to competitors
not subject to such regulation. Although many significant regulations applicable to swap dealers are already
in effect, Deutsche Bank is unable at this time to determine the full impact of these requirements because
some of the most important rules, such as margin requirements, have not yet been implemented.
In addition, CRD 4 provides for executive compensation reforms including caps on bonuses that may be
awarded to “risk takers” as defined in CRD 4. The compensation reforms of CRD 4 could put Deutsche
Bank at a disadvantage to its competitors in attracting and retaining talented employees, especially
compared to those outside the European Union that are not subject to these caps.
Bank levies also have been introduced in some countries including Germany and the United Kingdom and
are still under discussion in a number of other countries. Deutsche Bank accrued € 247 million for the
German and U.K. bank levies in 2011, € 213 million in 2012, and € 197 million in 2013, primarily recognized
in Consolidation & Adjustments. Furthermore, under the RRD and the SRM, as applicable, bank-funded
European resolution funds will be introduced, which will ultimately replace national resolution funds such as
the German restructuring fund. The single resolution fund under the SRM is expected to have a target size
of approximately € 55 billion (based upon 1% of deposits covered under the European deposit guarantee
schemes directive), of which approximately € 15 billion is expected to be contributed by German banks. On
this basis, Deutsche Bank believes its contributions over the coming eight years to the single resolution
fund might be substantial. Deutsche Bank also expects that the changes to the European deposit guarantee
schemes directive, which is currently pending publication, will, when transposed into German law, result in
new annual contributions to the German deposit protection guarantee scheme. Generally, however, the
total impact of these future levies cannot currently be quantified and they may have a material adverse
effect on Deutsche Bank’s business, results of operations and financial condition in future periods.
Separately, on January 22, 2013, the Council of the European Union adopted a decision authorizing eleven
member states (Austria, Belgium, Estonia, France, Germany, Greece, Italy, Portugal, Slovakia, Slovenia and
Spain) to proceed with the introduction of a financial transaction tax under the European Union’s “enhanced
cooperation procedure”. The European Commission adopted a draft directive for the implementation of the
financial transaction tax on February 14, 2013. In order to be implemented, all participating member states
have to agree to the directive unanimously. While Deutsche Bank expects further progress during 2014, the
final scope, design and entry into force (although currently contemplated by January 1, 2016) of the financial
transaction tax are still very uncertain. Depending on the final details, the proposed financial transaction tax
could have a materially negative effect on Deutsche Bank’s profits and business. National financial
transaction taxes have already been proposed or implemented in a number of European jurisdictions,
75
including France and Italy, and these taxes may result in compliance costs as well as market consequences
which may affect Deutsche Bank’s revenues.
Adverse market conditions, historically low prices, volatility and cautious investor sentiment have
affected and may in the future materially and adversely affect Deutsche Bank’s revenues and profits,
particularly in its investment banking, brokerage and other commission- and fee-based businesses.
As a result, Deutsche Bank has in the past incurred and may in the future incur significant losses
from its trading and investment activities.
As a global investment bank, Deutsche Bank has significant exposure to the financial markets and is more
at risk from adverse developments in the financial markets than are institutions engaged predominantly in
traditional banking activities. Sustained market declines have in the past caused and can in the future cause
Deutsche Bank’s revenues to decline, and, if Deutsche Bank is unable to reduce its expenses at the same
pace, can cause its profitability to erode or cause it to show material losses. Volatility can also adversely
affect Deutsche Bank, by causing the value of financial assets it holds to decline or the expense of hedging
its risks to rise. Reduced customer activity can also lead to lower revenues in Deutsche Bank’s “flow”
business.
Specifically, Deutsche Bank’s investment banking revenues, in the form of financial advisory and
underwriting fees, directly relate to the number and size of the transactions in which Deutsche Bank
participates and are susceptible to adverse effects from sustained market downturns. These fees and other
income are generally linked to the value of the underlying transactions and therefore can decline with asset
values. In addition, periods of market decline and uncertainty tend to dampen client appetite for market and
credit risk, a critical driver of transaction volumes and investment banking revenues, especially transactions
with higher margins. In late 2013 and at other times in the past, decreased client appetite for risk has led to
lower results in the Corporate Banking & Securities corporate division. Deutsche Bank’s revenues and
profitability could sustain material adverse effects from a significant reduction in the number or size of debt
and equity offerings and merger and acquisition transactions.
Market downturns also have led and may in the future lead to declines in the volume of transactions that
Deutsche Bank executes for its clients and, therefore, to declines in its noninterest income. In addition,
because the fees that Deutsche Bank charges for managing its clients’ portfolios are in many cases based
on the value or performance of those portfolios, a market downturn that reduces the value of Deutsche
Bank’s clients’ portfolios or increases the amount of withdrawals reduces the revenues Deutsche Bank
receives from its asset management and private banking businesses. Even in the absence of a market
downturn, below-market or negative performance by Deutsche Bank’s investment funds may result in
increased withdrawals and reduced inflows, which would reduce the revenue Deutsche Bank receives from
its asset management business. While Deutsche Bank’s clients would be responsible for losses it incurs in
taking positions for their accounts, it may be exposed to additional credit risk as a result of their need to
cover the losses where Deutsche Bank does not hold adequate collateral or cannot realize it. Deutsche
Bank’s business may also suffer if its clients lose money and it loses the confidence of clients in its
products and services.
In addition, the revenues and profits Deutsche Bank derives from many of its trading and investment
positions and its transactions in connection with them can be directly and negatively impacted by market
prices, which have been volatile in recent years. In each of the product and business lines in which
Deutsche Bank enters into these trading and investment positions, part of its business entails making
assessments about the financial markets and trends in them. When Deutsche Bank owns assets, market
price declines can expose it to losses. Many of the more sophisticated transactions of the Corporate
Banking & Securities corporate division and the Non-Core Operations Unit are designed to profit from price
movements and differences among prices. If prices move in a way Deutsche Bank has not anticipated, it
may experience losses. Also, when markets are volatile, the assessments Deutsche Bank has made may
prove to lead to lower revenues or profits, or may lead to losses, on the related transactions and positions.
In addition, Deutsche Bank commits capital and takes market risk to facilitate certain capital markets
transactions; doing so can result in losses as well as income volatility. Such losses may especially occur on
assets Deutsche Bank holds for which there are not very liquid markets initially. Assets that are not traded
on stock exchanges or other public trading markets, such as derivatives contracts between banks, may
have values that Deutsche Bank calculates using models other than publicly-quoted prices. Monitoring the
deterioration of prices of assets like these is difficult and could lead to losses Deutsche Bank did not
anticipate. Deutsche Bank can also be adversely affected if general perceptions of risk cause uncertain
investors to remain on the sidelines of the market, curtailing their activity and in turn reducing the levels of
activity in those of Deutsche Bank’s businesses dependent on transaction flow.
76
Since Deutsche Bank published its Strategy 2015+ targets in 2012, macroeconomic and market
conditions as well as the regulatory environment have been much more challenging than originally
anticipated, and as a result, Deutsche Bank has updated its aspirations to reflect these challenging
conditions. If Deutsche Bank is unable to implement its updated strategy successfully, it may be
unable to achieve its financial objectives, or incur losses or low profitability or erosions of its capital
base, and its share price may be materially and adversely affected.
In mid-2012, Deutsche Bank conducted a strategic review of its business focused on adapting its business
to the difficult economic and regulatory environment. As a result of this review, in September 2012,
Deutsche Bank published its strategic and financial aspirations for 2015 in its Strategy 2015+. However,
due to the extremely challenging environment since 2012, as reflected by sluggish economic growth,
difficult market conditions and increased litigation and regulatory costs, Deutsche Bank has recently
updated its aspirations and strategy for the Group and the Core Bank. In addition to revising its aspirations
to reflect current conditions, Deutsche Bank plans to make focused investments in order to take advantage
of client opportunities which it perceives to be available across its businesses, including with respect to its
CB&S business, its digital banking offerings and its coverage of multinational corporate clients and high net
worth individuals.
Deutsche Bank’s ability to meet its aspirations and implement its strategy is based on a number of key
assumptions regarding the future economic environment, the regulatory landscape, and anticipated interest
rates and central bank action. In addition, Deutsche Bank’s aspirations on cost reduction and its
cost-income ratio are based on the assumption that substantial outflows arising from litigation and
investigations by 2016 will not occur at the levels at which they have occurred in 2013 (and at which they
may continue to occur in 2014 and 2015). A number of internal and external factors could prevent the
realization of Deutsche Bank’s strategy’s anticipated benefits. In particular, if litigation and regulatory
matters continue to occur at the same rate and magnitude as in recent years, Deutsche Bank may not be
able to achieve all of its Strategy 2015+ aspirations. In addition, the reignition of the European sovereign
debt crisis, the recurrence of extreme turbulence in the markets in which Deutsche Bank is active,
weakness of global, regional and national economic conditions, geopolitical tensions, regulatory changes
that increase Deutsche Bank’s costs (i.e., CRD 4-induced changes to compensation) or restrict its activities,
or increased investments required to be competitive could also negatively affect Deutsche Bank’s ability to
implement its strategy or realize the benefits from it. If Deutsche Bank fails to implement its strategic
initiatives in whole or in part or should the initiatives that are implemented fail to produce the anticipated
benefits, or should the costs it incurs to implement its initiatives exceed the € 4.0 billion it has anticipated,
Deutsche Bank may fail to achieve its financial objectives, or incur losses or low profitability or erosions of
its capital base, and its share price may be materially and adversely affected.
Deutsche Bank operates in a highly and increasingly regulated and litigious environment, potentially
exposing it to liability and other costs, the amounts of which may be substantial and difficult to
estimate, as well as to legal and regulatory sanctions and reputational harm.
The financial services industry is among the most highly regulated industries. Deutsche Bank’s operations
throughout the world are regulated and supervised by the central banks and regulatory authorities in the
jurisdictions in which it operates. In recent years, regulation and supervision in a number of areas has
increased, and regulators, governmental bodies and others have sought to subject financial services
providers to increasing oversight and scrutiny, which in turn has led to additional regulatory investigations or
enforcement actions. This trend has accelerated markedly as a result of the global financial crisis and the
European sovereign debt crisis. In recent months, there has been a steep escalation in the severity of the
terms which regulators and law enforcement authorities have required to settle legal and regulatory
proceedings against financial institutions, with recent settlements including unprecedented monetary
penalties as well as criminal sanctions. As a result, Deutsche Bank may continue to be subject to increasing
levels of liability and regulatory sanctions, and may be required to make greater expenditures and devote
additional resources to addressing these liabilities and sanctions.
Deutsche Bank and its subsidiaries are involved in various litigation proceedings, including civil class action
lawsuits, arbitration proceedings and other disputes with third parties, as well as regulatory proceedings
and investigations by both civil and criminal authorities in jurisdictions around the world. Deutsche Bank
expects that it will continue to experience a high level of litigation, regulatory proceedings and
investigations. Litigation and regulatory matters are subject to many uncertainties, and the outcome of
individual matters is not predictable with assurance. Deutsche Bank may settle litigation or regulatory
proceedings prior to a final judgment or determination of liability. Deutsche Bank may do so to avoid the
cost, management efforts or negative business, regulatory or reputational consequences of continuing to
contest liability, even when it believes it has valid defenses to liability. Deutsche Bank may also do so when
the potential consequences of failing to prevail would be disproportionate to the costs of settlement.
77
Furthermore, Deutsche Bank may, for similar reasons, reimburse counterparties for their losses even in
situations where it does not believe that it is legally compelled to do so. The financial impact of legal risks
might be considerable but may be hard or impossible to estimate and to quantify, so that amounts
eventually paid may exceed the amount of provisions made for such risks.
Actions currently pending against Deutsche Bank may not only result in judgments, settlements, fines or
penalties, but may also cause substantial reputational harm to Deutsche Bank. The risk of damage to
Deutsche Bank’s reputation arising from such proceedings is also hard or impossible to quantify. For
example, Deutsche Bank is unable to quantify the harm to its reputation that could arise from the
investigation by the public prosecutor for the City of Munich of statements made by certain former and
present Management Board members in connection with the litigation relating to the former Kirch Group.
In addition, the financial impact of legal risks arising out of matters similar to some of those Deutsche Bank
faces have been very large for a number of participants in the financial services industry, with fines and
settlement payments greatly exceeding what market participants may have expected and, as noted above,
escalating steeply in recent months to unprecedented levels. The experience of others, including
settlement terms, in similar cases is among the factors Deutsche Bank takes into consideration in
determining the level of provisions it maintains in respect of these legal risks. Recent developments in
cases involving other financial institutions have led to greater uncertainty as to the predictability of
outcomes and could lead Deutsche Bank to add to its provisions. Moreover, the costs of Deutsche Bank’s
investigations and defenses relating to these matters are themselves substantial. Further uncertainty may
arise as a result of a lack of coordination among regulators from different jurisdictions, which may make it
difficult for Deutsche Bank to reach concurrent settlements with each regulator. Should Deutsche Bank be
subject to financial impacts arising out of litigation and regulatory matters to which it is subject in excess of
those it has calculated in accordance with its expectations and the relevant accounting rules, Deutsche
Bank’s provisions in respect of such risks may prove to be materially insufficient to cover these impacts.
This could have a material adverse effect on Deutsche Bank’s results of operations, financial condition or
reputation.
Deutsche Bank is currently the subject of regulatory and criminal industry-wide investigations
relating to interbank offered rates, as well as civil actions. Due to a number of uncertainties,
including those related to the high profile of the matters and other banks’ settlement negotiations,
the eventual outcome of these matters is unpredictable, and may materially and adversely affect
Deutsche Bank’s results of operations, financial condition and reputation.
Deutsche Bank has received subpoenas and requests for information from various regulatory and law
enforcement agencies in Europe, North America and Asia Pacific in connection with industry-wide
investigations concerning the setting of London Interbank Offered Rate (LIBOR), Euro Interbank Offered
Rate (EURIBOR), Tokyo Interbank Offered Rate (TIBOR) and other interbank offered rates. Deutsche Bank
is cooperating with these investigations.
The investigations underway have the potential to result in the imposition of significant financial penalties
and other consequences for the Bank.
On December 4, 2013, Deutsche Bank announced that it had reached a settlement with the European
Commission as part of a collective settlement to resolve the European Commission’s investigations in
relation to anticompetitive conduct in the trading of Euro interest rate derivatives and Yen interest rate
derivatives. Under the terms of the settlement agreement, Deutsche Bank agreed to pay € 725 million in
total. Deutsche Bank remains exposed to civil litigation and further regulatory action from other regulators
and governmental bodies relating to these benchmarks.
In addition, a number of civil actions, including putative class actions, are pending in federal court in the
United States District Court for the Southern District of New York and in other federal district courts against
Deutsche Bank and numerous other banks. All but two of these actions are filed on behalf of certain parties
who allege that they held or transacted in U.S. dollar LIBOR-based derivatives or other financial instruments
and sustained losses as a result of collusion or manipulation by the defendants regarding the setting of U.S.
dollar LIBOR. These civil actions are still at a relatively early stage.
Regulators are also investigating numerous financial institutions in addition to Deutsche Bank, and as details
of these investigations and their findings have become public, the reported actions of some financial
institutions have attracted substantial attention in the media and the markets, leading to further reputational
risk for institutions like Deutsche Bank that are currently subject to similar inquiries. In the period from mid2012 to early 2014, four financial institutions entered into settlements with the U.K. Financial Conduct
Authority (formerly the Financial Services Authority), U.S. Commodity Futures Trading Commission and U.S.
Department of Justice (DOJ). While the terms of the various settlements differed, they all involved
significant financial penalties and regulatory consequences. For example, two financial institutions’
78
settlements included a deferred prosecution agreement, pursuant to which the DOJ agreed to defer
prosecution of criminal charges against the applicable entity provided that the financial institution satisfies
the terms of the deferred prosecution agreement. The terms of the other financial institutions’ settlements
included non-prosecution agreements, pursuant to which the DOJ agreed not to file criminal charges
against the entities so long as certain conditions are met. In addition, affiliates of two of the financial
institutions agreed to plead guilty to a crime in a United States court for related conduct.
Deutsche Bank cannot predict the effect on it of the interbank offered rates matters, which could include
fines levied by government bodies, damages from private litigation for which it may be liable, legal and
regulatory sanctions and other consequences.
This uncertainty is further exacerbated by several factors outside of Deutsche Bank’s control, such as the
high profile of these matters and the contours of other financial institutions’ settlement negotiations. In
addition, regulatory and law enforcement authorities may make assessments about the conduct of
institutions in the industry as a whole, which may influence their actions with respect to Deutsche Bank.
Any fines, damages, legal or regulatory sanctions or other consequences may have a material adverse
effect, beyond provisions taken, on Deutsche Bank’s results of operations, financial condition or reputation.
A number of regulatory authorities are currently investigating Deutsche Bank in connection with
misconduct relating to manipulation of foreign exchange rates. The extent of Deutsche Bank’s
financial exposure to these matters could be material, and Deutsche Bank’s reputation may suffer
material harm as a result.
Deutsche Bank has received requests for information from certain regulatory authorities globally who are
investigating trading in the foreign exchange market. Deutsche Bank is cooperating with these
investigations. The investigations underway have the potential to result in the imposition of significant
financial penalties and other consequences for the Bank. Relatedly, Deutsche Bank is conducting its own
internal global review of foreign exchange trading. In connection with this review, Deutsche Bank has
taken, and will continue to take, disciplinary action with regards to individuals if merited. Deutsche Bank is
also named as a defendant in a consolidated putative class action brought in the United States District
Court for the Southern District of New York alleging antitrust claims relating to the alleged manipulation of
foreign exchange rates.
Many of these matters are still in their early stages and it is accordingly too early to estimate their outcome
or any fines that may be levied by governmental bodies or damages that may be incurred from private
litigation. A number of other financial institutions are also currently being investigated. Any settlements by
these institutions may adversely affect the outcomes for other financial institutions, such as Deutsche
Bank, in similar actions, especially as large settlements may be used as the basis or template for other
settlements. As a result, these matters may expose Deutsche Bank to substantial monetary damages and
defense costs in addition to criminal and civil penalties, and they could accordingly have a material adverse
effect on Deutsche Bank’s results of operations, financial condition or reputation.
A number of regulatory authorities are currently investigating or seeking information from Deutsche
Bank in connection with transactions with Monte dei Paschi di Siena. The extent of Deutsche Bank’s
financial exposure to these matters could be material, and Deutsche Bank’s reputation may be
harmed.
In February 2013 Banca Monte Dei Paschi Di Siena (“MPS”) issued civil proceedings in Italy against
Deutsche Bank AG alleging that Deutsche Bank fraudulently or negligently assisted former MPS senior
management in an accounting fraud on MPS, by undertaking repo transactions with MPS and “Santorini”, a
wholly owned SPV of MPS, which helped MPS defer losses on a previous transaction undertaken with
Deutsche Bank. MPS claimed at least € 500 million in damages. Subsequently, in July 2013, the
Fondazione Monte Dei Paschi, MPS’ largest shareholder, also issued civil proceedings in Italy for damages
based on substantially the same facts. In December 2013, Deutsche Bank reached an agreement with MPS
in relation to the transactions that resolves the civil proceedings by MPS. The civil proceedings by the
Fondazione Monte Dei Paschi remain pending.
There is also an ongoing criminal investigation by the Siena Public Prosecutor into the transactions and
certain unrelated transactions entered into by a number of other international banks with MPS. No charges
have yet been brought. Separately, Deutsche Bank has also received requests for information in relation to
the transactions from certain regulators relating to the original transactions, including with respect to
Deutsche Bank’s accounting for its MPS-related transactions and alleged failures by Deutsche Bank’s
management adequately to supervise the individuals involved in the matter. Deutsche Bank is cooperating
with these regulators and has commenced its internal employee disciplinary procedures. The extent of
Deutsche Bank’s financial exposure to these matters could be material, and Deutsche Bank’s reputation
may suffer material harm as a result of these matters.
79
Regulatory agencies in the United States are investigating whether Deutsche Bank’s historical
processing of certain U.S. Dollar payment orders for parties from countries subject to U.S. embargo
laws complied with U.S. federal and state laws. The eventual outcomes of these matters are
unpredictable, and may materially and adversely affect Deutsche Bank’s results of operations,
financial condition and reputation.
Deutsche Bank has received requests for information from regulatory agencies concerning its historical
processing of U.S. Dollar payment orders through U.S. financial institutions for parties from countries
subject to U.S. embargo laws. These regulatory agencies are investigating whether such processing
complied with U.S. federal and state laws. In 2006, Deutsche Bank voluntarily decided that it would not
engage in new U.S. Dollar business with counterparties in Iran, Syria, Sudan, North Korea and Cuba and to
exit existing U.S. Dollar business with such counterparties to the extent legally possible. In 2007, Deutsche
Bank decided that it will not engage in any new business, in any currency, with counterparties in Iran, Syria,
Sudan and North Korea and to exit existing business, in any currency, with such counterparties to the
extent legally possible; it also decided to limit its non-U.S. Dollar business with counterparties in Cuba. To
Deutsche Bank’s knowledge, these matters are still in the investigative stage as of the date of this
Prospectus, and Deutsche Bank is cooperating with these regulatory agencies. However, a number of other
financial institutions have previously settled matters of this nature by, among other things, payment of
significant monetary penalties, and unconfirmed reports regarding potential settlements involving other
financial institutions have appeared widely in the media. While Deutsche Bank has no reliable basis on
which to compare the ongoing investigations relating to it to any potential settlements involving other
institutions, it is possible that any such settlements may influence regulatory agencies in their interactions
with Deutsche Bank. Although it is too early to determine the outcomes of the investigations to which
Deutsche Bank is subject, any eventual outcome of these matters is unpredictable, and may materially and
adversely affect Deutsche Bank’s results of operations, financial condition and reputation.
Deutsche Bank has been subject to contractual claims and litigation in respect of its U.S. residential
mortgage loan business that may materially and adversely affect its results or reputation.
From 2005 through 2008, as part of its U.S. residential mortgage loan business, Deutsche Bank sold
approximately U.S. $ 84 billion of loans into private label securitizations and U.S. $ 71 billion through whole
loan sales. Deutsche Bank has been, and in the future may be, presented with demands to repurchase
loans from or to indemnify purchasers, investors or financial insurers with respect to losses allegedly
caused by material breaches of representations and warranties. Deutsche Bank’s general practice is to
process valid repurchase claims that are presented in compliance with contractual rights. As of March 31,
2014, Deutsche Bank has approximately U.S. $ 5.1 billion of mortgage repurchase demands outstanding
and not subject to agreements to rescind (based on original principal balance of the loans). Against these
outstanding demands, Deutsche Bank has established provisions of U.S. $ 550 million (€ 399 million) as of
March 31, 2014. As with provisions generally, however, it is possible that the provisions Deutsche Bank has
established may ultimately be insufficient, either with respect to particular claims or with respect to the full
set of claims that have been or may be presented. There are other potential mortgage repurchase demands
that Deutsche Bank anticipates may be made, but it cannot reliably estimate their timing or amount. As of
March 31, 2014, Deutsche Bank has completed repurchases, obtained agreements to rescind or otherwise
settled claims on loans with an original principal balance of approximately U.S. $ 4.4 billion. In connection
with those repurchases, agreements and settlements, Deutsche Bank has obtained releases for potential
claims on approximately U.S. $ 65.4 billion of loans sold by it as described above.
From 2005 through 2008, Deutsche Bank or its affiliates have also acted as an underwriter of approximately
U.S. $ 105 billion of U.S. residential mortgage-backed securities (referred to as “RMBS”) for third-party
originators.
As is the case with a significant number of other participants in the mortgage securitizations market,
Deutsche Bank has received subpoenas and requests for information from certain regulators and
government entities concerning its RMBS businesses. Deutsche Bank is cooperating fully in response to
those subpoenas and requests for information. Deutsche Bank has a number of pending lawsuits against it
or its affiliates as issuer and/or underwriter of RMBS. Such pending RMBS litigations are in various stages
up through discovery and Deutsche Bank continues to defend these actions vigorously. Legal and
regulatory proceedings are subject to many uncertainties, and the outcome of individual matters is not
predictable with assurance.
Deutsche Bank’s non-traditional credit businesses materially add to its traditional banking credit risks.
As a bank and provider of financial services, Deutsche Bank is exposed to the risk that third parties who
owe it money, securities or other assets will not perform their obligations. Many of the businesses
Deutsche Bank engages in beyond the traditional banking businesses of deposit-taking and lending also
expose it to credit risk.
80
In particular, much of the business Deutsche Bank conducts through the Corporate Banking & Securities
corporate division and the Non-Core Operations Unit entails credit transactions, frequently ancillary to other
transactions. Nontraditional sources of credit risk can arise, for example, from holding securities of third
parties; entering into swap or other derivative contracts under which counterparties have obligations to make
payments to Deutsche Bank; executing securities, futures, currency or commodity trades that fail to settle at
the required time due to nondelivery by the counterparty or systems failure by clearing agents, exchanges,
clearing houses or other financial intermediaries; and extending credit through other arrangements. Parties to
these transactions, such as trading counterparties, may default on their obligations to Deutsche Bank due to
bankruptcy, political and economic events, lack of liquidity, operational failure or other reasons.
Many of Deutsche Bank’s derivative transactions are individually negotiated and non-standardized, which
can make exiting, transferring or settling the position difficult. Certain credit derivatives require that
Deutsche Bank deliver to the counterparty the underlying security, loan or other obligation in order to
receive payment. In a number of cases, Deutsche Bank does not hold, and may not be able to obtain, the
underlying security, loan or other obligation. This could cause Deutsche Bank to forfeit the payments
otherwise due to it or result in settlement delays, which could damage its reputation and ability to transact
future business, as well as increased costs to it. Recently enacted legislation in the European Union (EMIR)
and the U.S. (the Dodd-Frank Act) has introduced requirements for the standardization, margining, central
clearing and transaction reporting of certain over-the-counter derivatives. While such requirements are
aimed at reducing the risk posed to counterparties and the financial system by such derivatives, they may
reduce the volume and profitability of the transactions in which Deutsche Bank engages, and compliance
with such provisions may impose substantial costs on it.
The exceptionally difficult market conditions experienced since the global financial crisis erupted severely
adversely affected certain areas in which Deutsche Bank does business that entail nontraditional credit
risks, including the leveraged finance and structured credit markets, and may do so in the future.
Deutsche Bank has incurred losses, and may incur further losses, as a result of changes in the fair
value of its financial instruments.
A substantial proportion of the assets and liabilities on Deutsche Bank’s balance sheet comprise financial
instruments that it carries at fair value, with changes in fair value recognized in the income statement. Fair
value is defined as the price at which an asset or liability could be exchanged in a current transaction
between knowledgeable, willing parties, other than in a forced or liquidation sale. If the value of an asset
carried at fair value declines (or the value of a liability carried at fair value increases) a corresponding
unfavorable change in fair value is recognized in the income statement. These changes have been and
could in the future be significant. Additionally, in recent periods there has been a significant difference
between fair value and book value for some assets.
Observable prices or inputs are not available for certain classes of financial instruments. Fair value is
determined in these cases using valuation techniques Deutsche Bank believes to be appropriate for the
particular instrument. The application of valuation techniques to determine fair value involves estimation
and management judgment, the extent of which will vary with the degree of complexity of the instrument
and liquidity in the market. Management judgment is required in the selection and application of the
appropriate parameters, assumptions and modeling techniques. If any of the assumptions change due to
negative market conditions or for other reasons, subsequent valuations may result in significant changes in
the fair values of Deutsche Bank’s financial instruments, requiring it to record losses.
Deutsche Bank’s exposure and related changes in fair value are reported net of any fair value gains it may
record in connection with hedging transactions related to the underlying assets. However, Deutsche Bank
may never realize these gains, and the fair value of the hedges may change in future periods for a number
of reasons, including as a result of deterioration in the credit of Deutsche Bank’s hedging counterparties.
Such declines may be independent of the fair values of the underlying hedged assets or liabilities and may
result in future losses.
Deutsche Bank’s risk management policies, procedures and methods leave it exposed to
unidentified or unanticipated risks, which could lead to material losses.
Deutsche Bank has devoted significant resources to developing its risk management policies, procedures
and assessment methods and intends to continue to do so in the future. Nonetheless, the risk
management techniques and strategies have not been and may in the future not be fully effective in
mitigating Deutsche Bank’s risk exposure in all economic market environments or against all types of risk,
including risks that it fails to identify or anticipate. Some of Deutsche Bank’s quantitative tools and metrics
for managing risk are based upon its use of observed historical market behavior. Deutsche Bank applies
statistical and other tools to these observations to arrive at quantifications of its risk exposures. During the
financial crisis, the financial markets experienced unprecedented levels of volatility (rapid changes in price
81
direction) and the breakdown of historically observed correlations (the extent to which prices move in
tandem) across asset classes, compounded by extremely limited liquidity. In this volatile market
environment, Deutsche Bank’s risk management tools and metrics failed to predict some of the losses it
experienced, particularly in 2008, and may in the future fail to predict important risk exposures. In addition,
Deutsche Bank’s quantitative modeling does not take all risks into account and makes numerous
assumptions regarding the overall environment, which may not be borne out by events. As a result, risk
exposures have arisen and could continue to arise from factors Deutsche Bank did not anticipate or
correctly evaluate in its statistical models. This has limited and could continue to limit Deutsche Bank’s
ability to manage its risks especially in light of the European sovereign debt crisis, many of the outcomes of
which are currently unforeseeable. Deutsche Bank’s losses thus have been and may continue to be
significantly greater than the historical measures indicate.
In addition, Deutsche Bank’s more qualitative approach to managing those risks not taken into account by
its quantitative methods could also prove insufficient, exposing it to material unanticipated losses. Also, if
existing or potential customers or counterparties believe Deutsche Bank’s risk management is inadequate,
they could take their business elsewhere or seek to limit their transactions with Deutsche Bank. This could
harm Deutsche Bank’s reputation as well as its revenues and profits.
Operational risks may disrupt Deutsche Bank’s businesses.
Deutsche Bank faces operational risk arising from errors, inadvertent or intentional, made in the execution,
confirmation or settlement of transactions or from transactions not being properly recorded, evaluated or
accounted for. An example of this risk concerns Deutsche Bank’s derivative contracts, which are not always
confirmed with the counterparties on a timely basis. For so long as the transaction remains unconfirmed,
Deutsche Bank is subject to heightened credit and operational risk and in the event of a default may find it
more difficult to enforce the contract. The European sovereign debt crisis and the global financial crisis, in
which the risk of counterparty default has increased, have increased the possibility that this operational risk
materializes.
In addition, Deutsche Bank’s businesses are highly dependent on its ability to process manually or through
its systems a large number of transactions on a daily basis, across numerous and diverse markets in many
currencies, and certain transactions Deutsche Bank processes are complex. Consequently, Deutsche Bank
relies heavily on its financial, accounting and other data processing systems that include manual processing
components. If any of these processes or systems do not operate properly, or are disabled, or subject to
intentional or inadvertent human error, Deutsche Bank could suffer financial loss, a disruption of its
businesses, liability to clients, regulatory intervention or reputational damage.
Deutsche Bank in particular faces the risk of loss events due to the instability, malfunction or outage of its
IT system and IT infrastructure. Such losses could materially affect Deutsche Bank’s ability to perform
business processes and may, for example, arise from the erroneous or delayed execution of processes as
either a result of system outages or degraded services in systems and IT applications. A delay in processing
a transaction, for example, could result in an operational loss if market conditions worsen during the period
after the error. IT-related errors may also result in the mishandling of confidential information, damage to
Deutsche Bank’s computer systems, financial losses, additional costs for repairing systems, reputational
damage, customer dissatisfaction or potential regulatory or litigation exposure.
Deutsche Bank operates in many geographic locations and is frequently subject to the occurrence of events
outside of its control. Despite the contingency plans Deutsche Bank has in place, its ability to conduct
business in any of these locations may be adversely impacted by a disruption in the infrastructure that
supports its business in that location, whether as a result of, for example, events that affect Deutsche
Bank’s third party vendors or the communities in which it operates. Such disruptions could affect public
infrastructure in these locations. Any number of events could cause such a disruption, including deliberate
acts such as sabotage, terrorist activities, bomb threats, strikes, riots and assaults on Deutsche Bank’s staff;
natural calamities such as hurricanes, snow storms, floods, pandemic disease outbreaks and earthquakes; or
other unforeseen incidents such as accidents, fires, explosions, utility outages, and political unrest. Any such
disruption could have a material adverse effect on Deutsche Bank’s business and financial position.
Deutsche Bank’s businesses are also exposed to risk from potential non-compliance with policies,
employee misconduct or negligence and fraud, which could result in regulatory sanctions, litigation and
serious reputational or financial harm. Such misconduct may include in the future the theft of proprietary
information, including proprietary software. In recent years, a number of multinational financial institutions
have suffered material losses due to the actions of “rogue traders” or other employees. It is not always
possible to deter or prevent employee misconduct and the precautions Deutsche Bank takes to prevent and
detect this activity may not be effective in all cases.
82
Third parties with which Deutsche Bank does business could also be sources of operational risk, including
with respect to breakdowns or failures of the systems or misconduct by the employees of such parties.
Many of the risks described above apply equally when Deutsche Bank relies on outside suppliers or
vendors to provide services to it or its customers.
Deutsche Bank’s operational systems are subject to an increasing risk of cyber attacks and other
internet crime, which could result in material losses of client or customer information, damage
Deutsche Bank’s reputation and lead to regulatory penalties and financial losses.
Among the operational risks Deutsche Bank faces is the risk of breaches of the security of its computer
systems due to unauthorized access to networks or resources, the introduction of computer viruses or
malware, or other forms of cyber attack or internet crime. Such breaches could threaten the confidentiality
of Deutsche Bank’s clients’ data and the integrity of Deutsche Bank’s systems. Deutsche Bank devotes
significant resources toward the protection of its computer systems against such breaches. To address the
evolving cyber threat risk, Deutsche Bank is currently expending significant additional resources to modify
and enhance its protective measures and to investigate and remediate any information security
vulnerabilities. Nevertheless, a residual risk remains that such measures may not be effective against all
threats. Given Deutsche Bank’s global footprint and the volume of transactions it processes, certain errors
or actions may be repeated or compounded before they are discovered and rectified.
Deutsche Bank and other financial institutions have experienced attacks on computer systems, including
attacks aimed at obtaining unauthorized access to confidential company or customer information or
damaging or interfering with company data, resources or business activities. Although Deutsche Bank has
to date not experienced any material loss of data from these attacks, it is possible, given the use of new
technologies and increasing reliance on the Internet and the varying nature and evolving sophistication of
such attacks, that Deutsche Bank may not be able to effectively anticipate and prevent all such attacks. A
successful attack could have a significant negative impact on Deutsche Bank, including as a result of
disclosure or misappropriation of confidential information, damage to computer systems, financial losses,
additional costs to Deutsche Bank (such as for investigation and reestablishing services), reputational
damage, customer dissatisfaction and potential regulatory or litigation exposure.
The size of Deutsche Bank’s clearing operations exposes it to a heightened risk of material losses
should these operations fail to function properly.
Deutsche Bank has large clearing and settlement businesses and an increasingly complex and
interconnected information technology (IT) landscape. These give rise to the risk that Deutsche Bank, its
customers or other third parties could lose substantial sums if its systems fail to operate properly for even
short periods. This will be the case even where the reason for the interruption is external to Deutsche
Bank. In such a case, Deutsche Bank might suffer harm to its reputation even if no material amounts of
money are lost. This could cause customers to take their business elsewhere, which could materially harm
Deutsche Bank’s revenues and profits.
Deutsche Bank may have difficulty in identifying and executing acquisitions, and both making
acquisitions and avoiding them could materially harm Deutsche Bank’s results of operations and its
share price.
Deutsche Bank considers business combinations from time to time. Even though Deutsche Bank reviews
the companies it plans to acquire, it is generally not feasible for these reviews to be complete in all
respects. As a result, Deutsche Bank may assume unanticipated liabilities, or an acquisition may not
perform as well as expected. Were Deutsche Bank to announce or complete a significant business
combination transaction, its share price could decline significantly if investors viewed the transaction as too
costly or unlikely to improve its competitive position. In addition, Deutsche Bank might have difficulty
integrating any entity with which it combines into its operations. Failure to complete announced business
combinations or failure to integrate acquired businesses successfully into those of Deutsche Bank could
materially and adversely affect Deutsche Bank’s profitability. It could also affect investors’ perception of
Deutsche Bank’s business prospects and management, and thus cause its share price to fall. It could also
lead to departures of key employees, or lead to increased costs and reduced profitability if Deutsche Bank
felt compelled to offer them financial incentives to remain.
The effects of the takeover of Deutsche Postbank AG may differ materially from Deutsche Bank’s
expectations.
Deutsche Postbank AG (together with its subsidiaries, “Postbank”) became a consolidated, majority-owned
subsidiary of Deutsche Bank in December 2010 following a public takeover offer by Deutsche Bank. In June
2012 Deutsche Postbank AG and a wholly-owned subsidiary of Deutsche Bank AG entered into a
domination and profit and loss transfer agreement, which became incontestably valid in September 2012.
83
As a result, Deutsche Bank has general control over the management of Postbank. The effects of this
acquisition on Deutsche Bank may differ materially from its expectations. Deutsche Bank’s estimates of the
synergies and other benefits that it expects to realize, and the costs that it might incur, as a result of this
acquisition involve subjective assumptions and judgments that are subject to significant uncertainties.
Moreover, Postbank’s securities portfolio contains products that may also be subject to material further
decreases in value.
Furthermore, unforeseen difficulties may emerge in connection with the integration of Postbank’s business,
including potential difficulties due to integration of IT systems and personnel, different internal standards
and business procedures, the commitment of management resources in connection with the integration
process and the potential loss of key personnel. The benefits, synergies, costs and timeframe of the
integration could be adversely affected by any of these factors, as well as by a variety of factors that are
partially or entirely beyond Deutsche Bank’s and Postbank’s control, such as negative market
developments. Any failure to integrate Postbank’s operations on a timely and efficient basis could have a
material adverse effect on Deutsche Bank’s net assets, financial condition and results of operations.
Deutsche Bank may have difficulties selling non-core assets at favorable prices or at all and may
experience material losses from these assets and other investments irrespective of market
developments.
Deutsche Bank may seek to sell certain non-core assets, including those of its Non-Core Operations Unit.
Such sales may be made as part of Deutsche Bank’s strategy to meet or exceed the new capital
requirements by reducing risk-weighted assets and thereby improving its capital ratios. This strategy may
prove difficult in the current market environment as many of Deutsche Bank’s competitors are also seeking
to dispose of assets to improve their capital ratios. Unfavorable business or market conditions may make it
difficult for Deutsche Bank to sell such assets at favorable prices, or may preclude such a sale altogether. If
the measures announced in response to the European sovereign debt crisis prove inadequate to calm
market concern or if the European debt crisis otherwise reignites, Deutsche Bank may experience difficulty
in obtaining funding in a manner permitting it to conduct its business without needing to dispose of
significant volumes of assets.
In addition, Deutsche Bank has made significant investments in individual companies and has other assets
that are not part of its core business such as its stakes in The Cosmopolitan of Las Vegas (casino and hotel)
and Maher Terminals (port terminals). Losses and risks from those assets and at those companies may
restrict Deutsche Bank’s ability to sell its shareholdings and may reduce the value of its holdings
considerably, potentially impacting its financial statements or earnings, even where general market
conditions are favorable. Deutsche Bank’s larger, less liquid interests are particularly vulnerable given the
size of these exposures. Any potential write-down for any such investment could further negatively affect
Deutsche Bank’s business.
Intense competition, in Deutsche Bank’s home market of Germany as well as in international
markets, could materially adversely impact its revenues and profitability.
Competition is intense in all of Deutsche Bank’s primary business areas, in Germany as well as in
international markets. If Deutsche Bank is unable to respond to the competitive environment in these
markets with attractive product and service offerings that are profitable for it, it may lose market share in
important areas of its business or incur losses on some or all of its activities. In addition, downturns in the
economies of these markets could add to the competitive pressure, through, for example, increased price
pressure and lower business volumes for Deutsche Bank.
In recent years there has been substantial consolidation and convergence among financial services
companies, culminating in unprecedented consolidations in the course of the global financial crisis. This
trend has significantly increased the capital base and geographic reach of some of Deutsche Bank’s
competitors and has hastened the globalization of the securities and other financial services markets. As a
result, Deutsche Bank must compete with financial institutions that may be larger and better capitalized
than it is and that may have a stronger position in local markets. Also, governmental action in response to
the global financial crisis may place Deutsche Bank at a competitive disadvantage.
Transactions with counterparties in countries designated by the U.S. State Department as state
sponsors of terrorism or persons targeted by U.S. economic sanctions may lead potential customers
and investors to avoid doing business with Deutsche Bank or investing in its securities, harm its
reputation or result in regulatory action which could materially and adversely affect its business.
Deutsche Bank engages or has engaged in a limited amount of business with counterparties, including
government owned or controlled counterparties, in certain countries which the U.S. State Department has
designated as state sponsors of terrorism, including Iran and Cuba (referred to as “Sanctioned Countries”),
or with persons targeted by U.S. economic sanctions (referred to as “Sanctioned Persons”). U.S. law
84
generally prohibits U.S. persons or persons acting within U.S. jurisdiction from doing business with
Sanctioned Countries or Sanctioned Persons. In addition, U.S. regulations may extend to activities in other
geographic areas and by non-U.S. persons depending on the circumstances. Deutsche Bank’s U.S.
subsidiaries, branch offices, and employees are and Deutsche Bank’s non-U.S. subsidiaries, branch offices,
and employees may become subject to those prohibitions and other regulations. Deutsche Bank is a
German bank and its activities with respect to Sanctioned Countries and Sanctioned Persons have been
subject to policies and procedures designed to avoid the involvement of persons within U.S. jurisdiction in
any managerial or operational role and to ensure compliance with United Nations, European Union and
German embargoes; in reflection of legal developments in the last years, Deutsche Bank further developed
its policies and procedures with the aim of ensuring compliance with regulatory requirements extending to
other geographic areas regardless of jurisdiction. However, should Deutsche Bank’s policies prove to have
been ineffective, it may be subject to regulatory action that could materially and adversely affect its
business. In 2007 and before, Deutsche Bank’s Management Board decided that it will not engage in new
business with counterparties in countries such as Iran, Syria, Sudan and North Korea and to exit existing
business to the extent legally possible and limit its business with counterparties in Cuba.
Deutsche Bank had a representative office in Tehran, Iran, which it discontinued at December 31, 2007.
Deutsche Bank’s remaining business with Iranian counterparties consists mostly of participations as lender
and/or agent in a few large trade finance facilities arranged some years ago to finance the export contracts
of exporters in Europe and Asia. The lifetime of most of these facilities is ten years or more and Deutsche
Bank is legally obligated to fulfill its contractual obligations. Deutsche Bank does not believe its business
activities with Iranian counterparties are material to its overall business, with the outstandings to Iranian
borrowers representing substantially less than 0.01 % of its total assets as of December 31, 2013 and the
revenues from all such activities representing less than 0.02 % of its total revenues for the year ended
December 31, 2013.
In recent years, the United States has taken steps, including the passage of the Comprehensive Iran
Sanctions, Accountability, and Divestment Act of 2010, the National Defense Authorization Act for Fiscal
Year 2012, the Iran Threat Reduction and Syria Human Rights Act of 2012, the Iran Freedom and CounterProliferation Act of 2012, and additional Executive Orders, to further deter foreign companies from dealing
with Iran, including by providing for possible sanctions against companies that provide services in support
of certain Iranian activity in (among others) the energy, shipping or military sectors or with certain Iranian
counterparties. These indirect, or “secondary”, U.S. economic sanctions also target foreign financial
institutions that, among other things, facilitate significant transactions with, or provide significant financial
services to a wide range of Iranian entities, persons, and financial institutions. Deutsche Bank does not
believe it has engaged in activities sanctionable under these statutes, but the U.S. authorities have
considerable discretion in applying the statutes and any imposition of sanctions against Deutsche Bank
could be material. It is also possible that direct and secondary sanctions imposed by the U.S. and other
jurisdictions could be expanded in the future. Proposals for expanded sanctions have been introduced in
Congress and elsewhere in recent months.
As required by Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 (Section 13(r)
of the Securities Exchange Act of 1934, as amended) Deutsche Bank has disclosed certain information
regarding its activities or transactions with persons subject to U.S. sanctions against Iran and other persons
subject to such provision.
Deutsche Bank is also engaged in a limited amount of business with counterparties domiciled in Cuba,
which is not subject to any United Nations, European Union or German embargo. The business consists of
a limited number of non-confirmed letters of credit and of structured export finance transactions and
represented substantially less than 0.01 % of Deutsche Bank’s assets as of December 31, 2013. The
transactions served to finance commercial products like tools for the sugar industry, and electricity supply,
pharmaceutical products and sanitary goods.
Deutsche Bank is aware, through press reports and other means, of initiatives by governmental and nongovernmental entities in the United States and elsewhere to adopt laws, regulations or policies prohibiting
transactions with or investment in, or requiring divestment from, entities doing business with Sanctioned
Countries, particularly Iran. Such initiatives may result in Deutsche Bank’s being unable to gain or retain
entities subject to such prohibitions as customers or as investors in Deutsche Bank’s securities. In addition,
Deutsche Bank’s reputation may suffer due to its association with such countries. Such a result could have
significant adverse effects on Deutsche Bank’s business or the price of its securities.
Risks Related to the Offering and the New Shares
Deutsche Bank AG’s share price has been and may remain volatile.
The Company’s share price has been volatile in the past. This was partially due to the high volatility in the
securities markets in general and for the shares of banks in particular, especially in connection with the
85
global financial crisis and the European sovereign debt crisis, and due to other developments that have
influenced the net assets, financial condition and results of operations of Deutsche Bank. In addition,
factors that may influence the share price of the Company include, investors’ opinions regarding the
prospects for the success of Deutsche Bank’s Strategy 2015+; current or potential future legal disputes,
changes in the legal system or regulatory measures affecting Deutsche Bank or the industries in which
Deutsche Bank maintains material loan exposures; failure to meet estimates by analysts; expectations of
the market in regard to the development of the value and adequate capitalization of banks in general;
investors’ estimates and the actual further development of banks in general; public declarations of
insolvencies or similar restructuring measures and investigations of the accounting practices of other banks
and the volatility of the market in general.
The holdings of shareholders who do not participate in the Offering will be significantly diluted.
Subscription rights for New Shares will expire if they are not exercised prior to expiry of the subscription
period. If a shareholder does not exercise the subscription rights granted to it, its percentage shareholding
in Deutsche Bank will decline and its voting rights will be diluted. This dilution will be proportional to the
percentage rate by which the share capital of the Company is increased and to the extent to which the
shareholder does not participate in the capital increase.
The holdings of the shareholders may be significantly diluted by future capital increases.
In order to meet its need for capital, the Company may issue in the future shares or convertible bonds or
warrants, for example to finance its business operations or to satisfy regulatory capital requirements. The
future issuance of shares, or the exercise of conversion or option rights on shares of the Company, may
dilute shareholders’ voting rights or their percentage ownership in the Company if the new shares are
issued without granting subscription rights or similar rights or to the extent such rights are not exercised.
If the Offering is not consummated or if Deutsche Bank AG’s share price declines sharply, the
subscription rights will expire or become worthless.
The New Shares will be subscribed by the Underwriters with the undertaking to offer such shares (except
for a fractional amount) to the shareholders for subscription. The underwriting of the New Shares will be
made on the basis of an Underwriting Agreement, from which the Underwriters may withdraw under
certain conditions. If the Underwriting Agreement is terminated prior to registration of the implementation
of the capital increase with the Commercial Register, the Offering will not take place and the subscription
rights will expire and become worthless. Under these circumstances investors will not be entitled to
delivery of shares of the Company. Any investors engaging in short selling transactions bear the risk of
being unable to meet their obligation to deliver New Shares. The agents brokering the subscription rights
transactions will not reverse such short selling transactions. Investors who purchased subscription rights via
a stock exchange will accordingly suffer a loss. If the Underwriters withdraw from the Underwriting
Agreement after the implementation of the capital increase is registered with the Commercial Register, the
shareholders who exercised their subscription rights may acquire New Shares at the subscription price.
Furthermore, the value of the subscription rights largely depends on the quoted market price of the shares
of the Company. A decline in share price will, therefore, have an adverse impact on the value of the
subscription rights.
It is not certain that subscription rights trading will develop, and the subscription rights may be
subject to greater quoted market price fluctuations than the shares of Deutsche Bank AG.
The Company intends to provide for the subscription rights to be traded during the period from June 6,
2014 until June 20, 2014 on the regulated market (XETRA and XETRA Frankfurt Specialist) of the Frankfurt
Stock Exchange. Subscription rights are also expected to be traded on the New York Stock Exchange. The
Company does not intend to apply for subscription rights trading on any other stock exchange. The
Company cannot assure that active subscription rights trading on a stock exchange will develop during this
period nor that there will be sufficient liquidity in subscription rights trading for the subscription rights during
this period. The development of the quoted market price of the Company’s shares is one of the factors
influencing the price of the subscription rights, which, however, may also be subject to considerably
stronger price fluctuations than the shares.
Deutsche Bank AG may not pay dividends in future fiscal years, be it because it does not generate
any balance sheet profit available for distribution, or for other reasons.
A dividend may only be distributed if the Company has recognized a balance sheet profit available for
distribution in its audited annual non-consolidated financial statements prepared under the German
86
Commercial Code (Handelsgesetzbuch – HGB). Deutsche Bank’s earnings situation may not remain positive
on a sustained basis or may deteriorate. This may result in the Company’s being unable to distribute
dividends in future fiscal years, or Deutsche Bank may be required to retain the distributable profits to
support its capital base and recognize them in the reserves rather than distributing them. Furthermore, if
the Bank fails to meet the regulatory capital adequacy requirements or liquidity requirements under CRR/
CRD 4 (including the combined buffer requirements), Deutsche Bank’s regulators may suspend or limit the
payment of dividends.
87
GENERAL INFORMATION
Documents Incorporated by Reference
The following information has been incorporated in this Prospectus by reference to the registration
documents of Deutsche Bank AG dated April 4, 2012 and May 27, 2013, respectively, both of which have
been approved by and filed with the BaFin (the German Federal Financial Supervisory Authority) and
published on www.db.com/ir/en/content/prospectuses_registration_document.htm; this Prospectus must
be read together with the following sections of the registration documents which are deemed to be
included in, and to form part of, this Prospectus:
This
Prospectus
“Financial Statements — Consolidated Financial
Statements (IFRS) of Deutsche Bank
Aktiengesellschaft for the Fiscal Year ended
December 31, 2011 (audited)”, page F-1
This
Prospectus
“Financial Statements — Consolidated Financial
Statements (IFRS) of Deutsche Bank
Aktiengesellschaft for the Fiscal Year ended
December 31, 2012 (audited)”, page F-1
Registration Document of April 4, 2012
(English language version)
Pages F-I-173 to F-I-401 and, only with respect to
the information identified by brackets in the
margins, pages F-I-42 to F-I-129
Registration Document of May 27, 2013
(English language version)
Pages F-I-242 to F-I-414 and, only with respect to
the information identified by brackets in the
margins, pages F-I-43 to F-I-186
The non-incorporated parts of the Company’s registration documents referenced above are not relevant for
investors or are covered elsewhere in this Prospectus.
Persons Responsible
Deutsche Bank Aktiengesellschaft, Frankfurt am Main, (also referred to as Deutsche Bank AG, the Bank or
the Company, and, together with its consolidated subsidiaries the Deutsche Bank Group, Deutsche Bank or
the Group) and UBS Limited, Banco Santander, S.A., Barclays Bank PLC, COMMERZBANK
Aktiengesellschaft, Goldman Sachs International, J.P. Morgan Securities plc, ABN AMRO Bank N.V., Banca
IMI S.p.A., Banco Bilbao Vizcaya Argentaria, S.A., Citigroup Global Markets Limited, ING Bank N.V.,
Mediobanca – Banca di Credito Finanziario S.p.A., SOCIETE GENERALE and UniCredit Bank AG (together
the Joint Bookrunners), as well as Bankhaus Lampe KG, CREDIT AGRICOLE CORPORATE AND
INVESTMENT BANK, DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Jefferies International Limited,
Mizuho International plc, NATIXIS, Nomura International plc, Raiffeisen Centrobank AG, RBC Europe
Limited, Standard Chartered Bank and Wells Fargo Securities International Limited (together the Co-Lead
Managers, and together with the Joint Bookrunners, the Underwriters) assume responsibility for the
contents of this Prospectus pursuant to Section 5(4) of the German Securities Prospectus Act
(Wertpapierprospektgesetz) and declare that to their knowledge the information contained in this
Prospectus is correct and that no material information has been omitted, and, having taken all reasonable
care that such is the case, the information contained in this Prospectus is, to the best of their knowledge, in
accordance with the facts and contains no omissions likely to affect its import. Notwithstanding Section 16
of the German Securities Prospectus Act, neither Deutsche Bank AG nor the Underwriters are under any
obligation by law to update the Prospectus.
Subject Matter of the Prospectus
For purposes of the public offerings in Germany and the United Kingdom and the admission to trading on
the regulated market of the Frankfurt Stock Exchange with the simultaneous admission to the sub-segment
of the regulated market with additional post-admission obligations (Prime Standard) of the Frankfurt Stock
Exchange and the admission to the regulated markets of the stock exchanges of Berlin, Dusseldorf,
Hamburg, Hanover, Munich and Stuttgart, this Prospectus relates to 299,841,985 new, no par value
ordinary registered shares of Deutsche Bank AG (the New Shares), each with a notional value of € 2.56 per
share in the share capital and with full dividend rights as from January 1, 2014 from the capital increase
against cash contributions from authorized capital resolved by the Company’s Management Board on
June 5, 2014, with approval of the Supervisory Board’s Chairman’s Committee, to which such competence
was delegated, of the same day.
This Prospectus constitutes a prospectus for the purposes of Article 3 of the Directive 2003/71/EC (the
“Prospectus Directive”), and has been filed with and approved by the BaFin pursuant to Section 13 of the
German Securities Prospectus Act. Following its approval by the BaFin, a copy of the Prospectus together
88
with a certificate of approval will be notified and delivered to the Financial Conduct Authority (“FCA”) in the
United Kingdom pursuant to Section 18 of the German Securities Prospectus Act (implementing Article 18
of the Prospectus Directive), such that the Prospectus may be used as an approved prospectus to offer
securities to the public in the United Kingdom for the purpose of Section 85 the Financial Services and
Markets Act 2000, as amended (“FSMA”) and the Prospectus Directive.
Investors who are resident in the United States of America (the “United States”) should take note of the
separate prospectus and the prospectus supplement pursuant to which the offering of the New Shares will
be made in the United States. The prospectus supplement for the offering in the United States will be filed
with the U.S. Securities and Exchange Commission (“SEC”) on or about June 5, 2014 and describe the
terms of the offering in the United States.
The New Shares will be offered to the Company’s shareholders in Canada in a rights offering pursuant to a
Canadian offering memorandum and only by persons permitted to sell such New Shares in Canada.
Forward-Looking Statements; Third Party Information
This Prospectus contains certain forward-looking statements. In this Prospectus, forward-looking
statements include, among others, statements relating to:
• the potential development and impact on Deutsche Bank of economic and business conditions and the
legal and regulatory environment to which the Group is subject;
• the implementation of the Deutsche Bank’s strategic initiatives and other responses there to;
• the development of aspects of Deutsche Bank’s results of operations;
• Deutsche Bank’s expectations of the impact of risks that affect its business, including the risks of losses
on the Group’s trading processes and credit exposures; and
• other statements relating to Deutsche Bank’s future business development and economic performance.
Forward-looking statements are statements that do not relate to historical facts or events and contain
forward-looking expressions. Expressions such as “anticipates”, “aims”, “believes”, “should”,
“estimates”, “expects”, “foresees”, “intends”, “plan”, “potential”, “projects”, “reasonably possible”,
“seeks” and similar expressions may indicate forward-looking statements. The information in this
Prospectus regarding intentions, beliefs, or current expectations of the Company regarding its future
financial condition and results of operation, plans, liquidity, business outlooks, growth, strategy and
profitability, as well as the economic conditions in which the Company operates constitute forward-looking
statements.
By their very nature, forward-looking statements involve risks and uncertainties, both general and specific.
The Company bases these statements on its current plans, estimates, projections and expectations and
they relate to events and are based on current assumptions, which may not occur in the future. These
forward-looking statements may not be indicative of future performance; the actual outcome of Deutsche
Bank AG’s or the Deutsche Bank Group’s financial condition and results of operations, and the development
of economic conditions, may differ materially from, in particular, be more negative than, those conditions
expressly or implicitly assumed or described in such statements. Even if the actual results of the Company
or, as applicable, the Deutsche Bank Group, including the financial condition, results of operations and
economic conditions, develop in line with the forward-looking statements contained in this Prospectus,
there can be no assurance that this will be the case in the future. Accordingly, prospective investors are
strongly advised to read the following sections of this Prospectus: “Summary”, “Risk Factors”,
“Management’s Discussion and Analysis of Financial Condition and Results of Operations”, “Risk
Management”, “Business” and “Recent Developments and Outlook”. These sections include more
detailed descriptions of factors that might have an impact on Deutsche Bank’s business and the markets in
which Deutsche Bank operates.
Neither the Company nor the Underwriters assume any obligation to update such forward-looking
statements or to adapt them to future events or developments to the extent that it is not legally required to
do so.
Furthermore, this Prospectus contains industry and customer-related data as well as calculations taken or
derived from industry reports published by third parties, market research reports, publicly available
information and commercial publications (external data). Commercial publications generally state that the
information they contain has originated from sources assumed to be reliable, but that the accuracy and
completeness of such information is not guaranteed and that the calculations contained therein are based
on assumptions. The external data has not been independently verified by the Company and the Company
assumes no responsibility for the accuracy of any of the external data taken or derived from public sources.
89
The following external data and sources are cited:
• Euromoney, Euromoney FX survey 2013 (available at: http://www.euromoney.com/Article/3196153/FXsurvey-2013-Overall-Results.html) (“Euromoney FX Survey”);
• Greenwich Associates, 2013 Fixed Income Investors Europe, United States, Asia Overall, Japan Overall
Yen and Non-Yen surveys (available for download at: http://www.greenwich.com/greenwich-research/
research-documents) (“Greenwich Associates – Fixed Income”);
• Greenwich Associates, 2013 European Equity Investors, US Equity Investors, Japan Equity Investors,
Asia Equity Investors surveys (available for download at: http://www.greenwich.com/greenwichresearch/research-documents) (“Greenwich Associates – Equity Investors”);
• Dealogic, Analysis of deal data as of 31 Dec 2013 from Dealogic’s proprietary database (accessible only
through application; contact: http://www.dealogic.com/contact-us/) (“Dealogic”).
In particular, external data was used to define the markets described in this Prospectus and to determine
their size. In this process, the categories applied by the respective sources were also used as a basis.
These categories generally do not correspond to the categories used by Deutsche Bank in determining its
financial and other data. As a result, the ability to compare external data with the Deutsche Bank’s financial
and other data is limited, including with respect to the statements relating to Deutsche Bank’s market
shares. Many of Deutsche Bank’s customers maintain customer relationships with several banks. For this
reason, persons whom Deutsche Bank counts as its customers may also be included in other financial
institutions’ market share calculations. Calculations of market shares or other similar data on the basis of
customer numbers may therefore result in multiple institutions’ including the same customer in their
respective data.
Where information in this Prospectus has been sourced from a third party, the Bank confirms that this
information has been accurately reproduced and that, to the extent the Bank is aware and able to ascertain
from information published by such third party, no facts have been omitted which would render the
reproduced information inaccurate or misleading. Investors should nevertheless consider this information
carefully.
Note Regarding Currency and Financial Information
The amounts in this Prospectus stated in “€” or “Euro” refer to the legal currency of Germany since
January 1, 1999.
The amounts in this Prospectus stated in “$”, “U.S. $” or “USD” refer to the legal currency of the United
States of America, the amounts in “£” and “GBP” refer to the legal currency of the United Kingdom, the
amounts in “RMB” refer to the legal currency of the People’s Republic of China, the amounts in “Yen” or
“JPY” refer to the legal currency of Japan, the amounts in “NZD” or “New Zealand dollar” refer to the legal
currency of New Zealand, the amounts in “AUD” or “Australian dollar” refer to the legal currency of the
Commonwealth of Australia, the amounts in “CAD” or “Canadian dollar” refer to the legal currency of
Canada and the amounts in “NOK” or “Norwegian kroner” refer to the legal currency of the Kingdom of
Norway.
If not otherwise stated, the financial data contained in this Prospectus is taken from the audited
consolidated financial statements of the Company prepared in accordance with IFRS as of and for the fiscal
years ended December 31, 2013, 2012 and 2011, the audited non-consolidated financial statements of the
Company prepared in accordance with the German Commercial Code (Handelsgesetzbuch – HGB) and the
Regulation on Accounting by Credit Institutions and Financial Services Institutions (KreditinstitutsRechnungslegungsverordnung) as of and for the fiscal year ended December 31, 2013 and the reviewed
condensed consolidated interim financial statements prepared in accordance with IFRS as of and for the
three-month period ended March 31, 2014. The IFRS condensed consolidated interim financial statements
as of and for the three-month period ended March 31, 2014, together with the review report, are included
in the section “Financial Statements” of this Prospectus. The audited non-consolidated financial statements
of the Company prepared in accordance with the German Commercial Code (HGB) as of and for the fiscal
year ended December 31, 2013 and the audited consolidated financial statements of the Company
prepared in accordance with IFRS as of and for the fiscal year ended December 31, 2013, together with the
respective auditor’s reports, are also contained in the section “Financial Statements” of this Prospectus.
The consolidated financial statements of the Company as of and for the fiscal year ended December 31,
2012, together with the respective auditor’s report, are incorporated into this Prospectus by reference to
the Company’s registration document dated May 27, 2013, see “—Documents Incorporated by
Reference”. The consolidated financial statements of the Company as of and for the fiscal year ended
December 31, 2011, together with the respective auditor’s report, are incorporated into this Prospectus by
reference to the Company’s registration document dated April 4, 2012, see “—Documents Incorporated by
Reference”.
90
Financial data labeled “audited” in this Prospectus were taken from the audited financial statements
described above and financial data labeled “reviewed” were taken from the reviewed condensed
consolidated interim financial statements described above. Any financial data referred to as “unaudited” in
this Prospectus means that the financial data were neither “audited” nor “reviewed”. Where explicitly so
stated, certain unaudited financial information has been derived from Deutsche Bank’s Annual Report 2013
on Form 20-F which has been submitted to the U.S. Securities and Exchange Commission and can be
found on Deutsche Bank’s investor relations website (www.db.com/ir).
Individual figures (including percentages) stated in this Prospectus have been rounded using the common
commercial method (kaufmännische Rundung). The sum totals or interim totals contained in the tables may
possibly differ from the non-rounded figures contained elsewhere in this Prospectus due to this rounding.
Furthermore, figures that have been rounded may possibly not exactly add up to the interim totals or sum
totals contained in the tables or stated elsewhere in this Prospectus.
Non-GAAP Financial Measures
This Prospectus contains certain financial measures that are not recognized under generally accepted
accounting principles (“GAAP”). Non-GAAP financial measures are measures of the Group’s historical or
future performance, financial position or cash flows that contain adjustments that exclude or include
amounts that are included or excluded, as the case may be, from the most directly comparable measure
calculated and presented in accordance with IFRS in the Group’s financial statements.
Pre-Tax and Post-Tax Return on Average Active Equity: The pre-tax return on average active equity nonGAAP financial measure is based on IBIT attributable to Deutsche Bank shareholders, as a percentage of
the Group’s average active equity, both as defined below.
In connection with the implementation of the Group’s communicated strategy, Deutsche Bank considers
the post-tax return on average active equity, both on a Group and a segment basis. The post-tax return on
both average shareholders’ equity and average active equity at the Group level reflects the reported
effective tax rate for the Deutsche Bank, which was 34 % for the three months ended March 31, 2014,
31 % for the three months ended March 31, 2013 and 53 % for 2013, 61 % for 2012, and 20 % for 2011.
For the post-tax return on average active equity of the segments, the Group effective tax rate was adjusted
to exclude the impact of permanent differences not attributable to the segments, so that the segment tax
rate was 33 % for the three months ended March 31, 2014, 33 % for the three months ended March 31,
2013 and 42 % for 2013, 35 % for 2012, and 30 % for 2011.
IBIT attributable to Deutsche Bank Shareholders: The income before income taxes (“IBIT”) attributable
to Deutsche Bank shareholders non-GAAP financial measure is based on income (loss) before income taxes
attributable to Deutsche Bank shareholders (i.e., excluding pre-tax noncontrolling interests):
in € m.
Income (loss) before income taxes (IBIT)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less income (loss) before income taxes attributable to noncontrolling interest . . . . . .
IBIT attributable to Deutsche Bank shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Three months ended
March 31,
2014
2013
1,680
2,414
(20)
(10)
1,660
2,405
1 Reviewed.
in € m.
Income (loss) before income taxes (IBIT)(1) . . . . . . .
Less income (loss) before income taxes
attributable to noncontrolling interest . . . . . . . . .
IBIT attributable to Deutsche Bank
shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Year ended
December 31,
2013 2012 2011
1,456
814 5,390
2013 increase
(decrease)
from 2012
in € m. in %
642
79
2012 increase
(decrease)
from 2011
in € m. in %
(4,576) (85)
(15)
(64)
(209)
48
(76)
145
(69)
1,441
750
5,181
691
92
(4,430)
(86)
Source: Deutsche Bank Annual Report 2013 on Form 20-F
1 Audited.
Average Active Equity: The Group calculates active equity to make comparisons to its competitors easier and
refers to active equity in several ratios. However, active equity is not a measure provided for in IFRS and the
Group’s ratios based on average active equity should not be compared to other companies’ ratios without
considering differences in the calculations. The Group adjusts the average shareholders’ equity for average
dividends, for which a proposal is accrued on a quarterly basis and which are paid after the approval at the
Annual General Meeting each year. Effective July 1, 2013, the definition of active equity has been aligned to the
91
CRR/CRD 4 framework. Under the revised definition, shareholders’ equity is adjusted only for dividend accruals
(i.e., accumulated other comprehensive income (loss) excluding foreign currency translation, net of taxes, is
now part of active equity). Prior periods for 2013 and 2012 have been adjusted accordingly.
in € m.
Average shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average dividend accruals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average active equity(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Three months ended
March 31,
2014
2013
55,353
54,621
(860)
(784)
54,493
53,836
1 Reviewed.
Year ended
December 31,
2013 increase 2012 increase
(decrease)
(decrease)
from 2012
from 2011
in € m.
2013 2012 2011 in € m. in % in € m. in %
Average shareholders’ equity . . . . . . . . . . . . . . . . . . . 56,080 55,597 50,547
483
1
5,051
10
Add (deduct):
Average accumulated other comprehensive income
excluding foreign currency translation, net of
0
0
519
0 N/M
(519) N/M
applicable tax(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average dividend accruals . . . . . . . . . . . . . . . . . . . . . . (646) (670) (617)
24
(4)
(54)
9
507
1
4,478
9
Average active equity(2) . . . . . . . . . . . . . . . . . . . . . . . . 55,434 54,927 50,449
N/M – Not meaningful
1 The tax effect on average accumulated other comprehensive income excluding foreign currency translation was
€ (360) million for the year ended December 31, 2011.
2 Audited.
Pre-tax and post-tax returns on average active equity are presented below. For comparison, also presented
are the pre-tax and post-tax returns on average shareholders’ equity, which are defined as IBIT and net
income, respectively, attributable to Deutsche Bank shareholders (i.e., excluding pre-tax and post-tax
noncontrolling interests), as a percentage of average shareholders’ equity.
in %.
Pre-tax return on average shareholders’ equity . . . . . . . . . . . . . . . . . . . . . .
Pre-tax return on average active equity(1) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Post-tax return on average shareholders’ equity . . . . . . . . . . . . . . . . . . . . .
Post-tax return on average active equity(1) . . . . . . . . . . . . . . . . . . . . . . . . . .
Three months ended
March 31,
2014
2013
12.0%
17.6%
12.2%
17.9%
7.8%
12.1%
7.9%
12.3%
1 Reviewed.
in %.
Pre-tax return on average shareholders’ equity . .
Pre-tax return on average active equity(1) . . . . . . . .
Post-tax return on average shareholders’
equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Post-tax return on average active equity(1) . . . . . . .
Year ended
December 31,
2013 increase
(decrease)
from 2012
2012 increase
(decrease)
from 2011
2013
2.6%
2.6%
2012
1.3%
1.4%
2011
10.2%
10.3%
1.3 ppt
1.2 ppt
(8.9) ppt
(8.9) ppt
1.2%
1.2%
0.5%
0.5%
8.2%
8.2%
0.7 ppt
0.7 ppt
(7.7) ppt
(7.7) ppt
1 Audited.
Leverage Ratio: As part of its balance sheet management, the Group used through December 31, 2013 an
adjusted leverage ratio, which was calculated using a target definition for which adjustments were made to
reported IFRS total assets and total equity. Such adjusted measures, which are non-GAAP financial
measures, are described in “Risk Management—Balance Sheet Management”. As outlined there,
Deutsche Bank has established a new leverage ratio calculation following the publication of the CRR/CRD 4
on June 27, 2013. Results are based on the Group’s current interpretation of rules and might therefore vary
92
from the assumptions and estimates applied by Deutsche Bank’s competitors. Accordingly, the CRR/CRD 4
non-GAAP financial measures may not be comparable with similarly labeled measures used by Deutsche
Bank’s competitors.
Book Value and Tangible Book Value per Basic Share Outstanding
Book value per basic share and tangible book value per basic share are non-GAAP financial measures that
are used and relied upon by investors and industry analysts as capital adequacy metrics. Book value per
basic share represents the Bank’s total shareholders’ equity divided by the number of basic shares
outstanding at period-end. Tangible book value represents the Bank’s total shareholders’ equity less
goodwill and other intangible assets. Tangible book value per basic share is computed by dividing tangible
book value by period-end basic shares outstanding.
Tangible Book Value
(reviewed)
in € m.
Total shareholders’ equity (book value) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill and other intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tangible shareholders’ equity (tangible book value) . . . . . . . . . . . . . . . . . .
Year ended
December 31,
Three months ended
March 31,
2014
2013
55,753
55,820
(13,951)
(14,342)
41,802
41,479
(decrease)
(decrease)
from 2012
from 2011
(audited)
in € m.
2013
2012
2011 in € m. in % in € m. in %
Total shareholders’ equity (book value) . . . . . . . . 54,719 54,001 53,390
718
1
611
1
Goodwill and other intangible assets . . . . . . . . . . (13,932) (14,219) (15,802)
287
(2)
1,582 (10)
Tangible shareholders’ equity (tangible book
value) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,786 39,782 37,588
1,005
3
2,193
6
Basic Shares Outstanding
(unaudited)
in € m.
Number of shares issued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Treasury shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Vested share awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Basic shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Book value per basic shares outstanding in € . . . . . . . . . . . . . . . . . . . . . . .
Tangible book value per basic share outstanding in € . . . . . . . . . . . . . . . . .
Three months ended
March 31,
2014
2013
1,019.5
929.5
(0.2)
(0.3)
7.3
10.0
1,026.6
939.2
54.31
59.44
40.72
44.17
Year ended
December 31,
(decrease)
(decrease)
from 2012
from 2011
(unaudited)
in € m.
2013 2012 2011 in € m. in % in € m. in %
Number of shares issued . . . . . . . . . . . . . . . . . . . . . . . . 1,019.5 929.5 929.5
90.0
9.7
0
0
Treasury shares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(0.2) (0.3) (24.9)
0.1 (45.6)
24.6 (98.7)
Vested share awards . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.4 12.1 14.2
(3.7) (30.9)
(2.1) (14.6)
Basic shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . 1,027.7 941.3 918.8
86.4
9.2
22.5
2.4
Book value per basic shares outstanding in € . . . . . . . . 53.24 57.37 58.11 (4.13) (7.2) (0.74) (1.3)
Tangible book value per basic share outstanding
in € . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39.69 42.26 40.91 (2.57) (6.1)
1.35
3.3
CRR/CRD 4 Pro Forma Solvency Measures
While Deutsche Bank’s regulatory assets, exposures, risk-weighted assets, capital and ratios thereof as of
December 31, 2013 were calculated for regulatory purposes and are set forth throughout this Prospectus
under the Basel 2.5 capital rules, Deutsche Bank also sets forth in several places such measures as of such
date under a pro forma application of the regulation on prudential requirements for credit institutions and
investment firms (CRR) and the Capital Requirements Directive 4 (CRD 4) implementing Basel 3, which
were passed on June 27, 2013 and which apply on and after January 1, 2014. Because CRR/CRD 4 was not
93
yet applicable as of December 31, 2013 such measures are also non-GAAP financial measures. Deutsche
Bank believes that these pro forma CRR/CRD 4 calculations provide useful information to investors as they
reflect Deutsche Bank’s progress against the new regulatory capital standards and as many of Deutsche
Bank’s competitors have been describing CRR/CRD 4 calculations on a “fully loaded” basis, as described
below.
Although the CRR/CRD 4 rules have to be applied on and after January 1, 2014, Deutsche Bank determined
its pro forma Common Equity Tier 1 capital (CET 1 capital) and pro forma risk-weighted assets (RWA)
according to the solvency rules under CRR/CRD 4. Deutsche Bank’s interpretation is formally incorporated
in policies governed by the same structures and committees as the policies that it uses to calculate RWA
and CET 1 capital under Basel 2.5 rules.
The “fully loaded” CRR/CRD 4 metrics, which are implemented on a pro forma basis, reflect the application
of the rules that are expected to govern Deutsche Bank as of 2019 according to the corresponding
legislation. The “transitional” CRR/CRD 4 measures account for the probable phase-in of provisions which
are expected to be allowed to ease the transition for banks to the “fully loaded” capital rules. In some
cases, CRR/CRD 4 left in place unchanged transitional rules regarding the risk weighting of certain
categories of assets that had been adopted in earlier capital adequacy frameworks through Basel 2.5. In
these cases, Deutsche Bank’s CRR/CRD 4 methodology assumes that the impact of the expiration of these
transitional rules will be mitigated through sales of the underlying assets or other measures prior to these
expirations. As the final implementation of CRR/CRD 4 may differ from Deutsche Bank’s earlier
expectations, and its competitors’ assumptions and estimates regarding such implementation may vary,
Deutsche Bank’s CRR/CRD 4 non-GAAP financial measures may not be comparable with similarly labeled
measures used by competitors. For additional information see “Risk Management—Regulatory Capital”.
Adjusted Cost Base and Income Before Income Taxes Adjusted
In connection with the implementation of the Group’s communicated strategy, the Group considers its cost
base and its adjusted income before income taxes adjusted, both on a Group and a segment basis.
Adjusted cost base is a non-GAAP financial measure most directly comparable to the IFRS financial
measure noninterest expenses. Adjusted cost base is calculated by adjusting noninterest expenses under
IFRS for (i) the costs-to-achieve (CtA) of the Group’s Operational Excellence Program (OpEx), (ii) litigation
expenses, (iii) policyholder benefits and claims, (iii) other severances, (iv) impairment of goodwill and other
intangible assets and other divisional-specific cost items. Deutsche Bank uses adjusted cost base in
calculating its adjusted cost-income ratio.
Income before income taxes adjusted (IBIT adjusted) is a non-GAAP financial measure most directly
comparable to the IFRS financial measure income before income taxes (IBIT). IBIT adjusted is calculated by
adjusting IBIT under IFRS for (i) credit valuation adjustments (mark-to-market movements on related
hedges), debt valuation adjustments and funding valuation adjustments (CVA/DVA/FVA), (ii) OpEx CtA, (iii)
other severances, (iv) litigation expenses and (v) impairment of goodwill and other intangible assets.
Deutsche Bank uses IBIT adjusted in calculating its adjusted return on equity.
The Group believes that the presentation of its results of operations excluding the impact of these items
provides a more meaningful depiction of the underlying fundamentals of its businesses impacted by such
items.
In the implementation of the Group’s OpEx program, additional expenses toward the realization of such
program (CtA) are incurred in current periods that the Group intends to result in cost savings over the longer
term.
Separate from the OpEx CtA, other severance expenses are incurred as part of the Group’s efforts to
position itself to meet current and future business and economic conditions.
The Group has also incurred impairments of goodwill and other intangible assets, some of which pertain to
businesses impacted by the Group’s response to business and economic conditions.
The Group’s litigation expenses have been impacted by a number of larger items, many of which relate to
matters occurring years before, such that inclusion of such items in the current period adjusted figures may
obscure the underlying performance in the current period.
For internal steering purposes, policyholder benefits and claims are reclassified from noninterest expenses
to noninterest revenues so as to consider them together with insurance revenues, to which they are
related. The reclassification does not affect the calculation of IBIT adjusted.
CVA, or credit valuation adjustment, is an adjustment to asset values to reflect the counterparty’s credit
risk. In calculating its IBIT adjusted, Deutsche Bank excludes mark-to-market movements related to
mitigating hedges for CRR/CRD 4 risk-weighted assets arising on CVA.
94
DVA, or debt valuation adjustment, is the Group’s valuation methodology for incorporating the impact of
own credit risk in the fair value of derivative contracts.
FVA, or funding valuation adjustment, is the Group’s valuation methodology for incorporating the market
implied funding costs for uncollateralized derivative positions in their fair values.
Other divisional-specific cost items include cost items which are unrelated to the divisions’ underlying
operating business.
Following is a reconciliation of Deutsche Bank’s adjusted cost base to its reported noninterest expenses for
the fiscal years 2013 and 2012. Segment noninterest expenses under IFRS for both years have been
restated to reflect the transfer of the Special Commodities Group from Corporate Banking & Securities to
the Non-Core Operation Unit in the first quarter of 2014. Deutsche Bank cannot predict or quantify the
levels relating to any adjustments for future periods.
(unaudited,
unless stated
otherwise) in €
m.
Noninterest
expenses
(IFRS) . . . . .
Cost-toachieve(2) .
Litigation . . .
Policyholder
benefits
and
claims . . . .
Other
severance
Remaining(3)
Adjusted cost
base . . . . . . .
2013
Corporate
Deutsche
Private
Banking
Global
Asset &
&
Consolidation
Transaction
&
&
Wealth
Business
Securities Banking Management Clients Adjustments
Core
Bank
Non-Core
Total
Operation
Consolidated
Unit
10,161
2,648(1)
3,929(1)
7,276(1)
(313)
(1,142)
(109)
(11)
(318)
(50)
(552)
(1)
7
(536)
N/A
N/A
(460)(1)
N/A
N/A
(460)(1)
N/A
(460)(1)
(26)
0
(6)
(82)
(5)
(38)
(8)
(74)
(20)
(94)
(64)
(288)
(5)
(62)
(69)
(350)
8,680
2,440
3,057
6,641
187
21,005
2,143
23,147
830(1) 24,844
(1,287)
(1,740)
3,550
(45)
(1,296)
28,394(1)
(1,331)
(3,036)
N/A – Not applicable
1 Audited.
2 Includes cost-to-achieve related to Postbank and OpEx.
3 Includes impairment of goodwill and other intangible assets and other divisional–specific cost items.
(unaudited,
unless stated
otherwise)
in € m.
Noninterest
expenses
(IFRS) . . . . .
2012
Corporate
Deutsche
Private
Banking
Global
Asset &
&
Consolidation
&
Transaction
Wealth
Business
&
12,070
3,327
4,299
7,224(1)
(304)
(790)
(41)
(303)
(105)
(64)
(440)
(1)
(1)
(457)
(414)(1)
N/A
N/A
Non-Core
Core Operation
Total
Bank
Unit
Consolidated
582(1) 27,503
3,697
31,201(1)
(13)
(992)
(905)
(2,607)
Cost-toachieve(2) .
Litigation . . .
Policyholder
benefits
and
claims . . .
Other
severance
Remaining(3)
N/A
N/A
(102)
(1,174)
(24)
(353)
(42)
(368)
(19)
(47)
(55)
0
(243)
(1,943)
(4)
(421)
(247)
(2,364)
Adjusted cost
base . . . . . .
9,701
2,605
3,305
6,716
69
22,397
2,267
24,664
(892)
(1,615)
(414)(1)
N/A
(414)(1)
N/A – Not applicable
1 Audited.
2 Includes cost-to-achieve related to Postbank and OpEx.
3 Includes impairment of goodwill and other intangible assets and other divisional–specific cost items.
95
Following is a reconciliation of Deutsche Bank’s IBIT adjusted to its reported IBIT for the fiscal years 2013
and 2012. Segment IBIT under IFRS for both years has been restated to reflect the transfer of the Special
Commodities Group from Corporate Banking & Securities to the Non-Core Operation Unit in the first quarter
of 2014. Deutsche Bank cannot predict or quantify the levels relating to any adjustments for future periods.
(unaudited, unless
stated otherwise)
in € m.
2013
Corporate
Deutsche
Private
Global
Consolidation
Banking
Asset &
&
Transaction
&
&
Wealth
Business
IBIT (IFRS) . . . . .
CVA/DVA/
FVA(2) . . . . . .
Cost-toachieve . . . .
Other
severance . .
Litigation . . . . .
Impairment of
goodwill and
other
intangible
assets . . . . .
IBIT adjusted . .
1
2
3,159
1,107(1)
782(1) 1,555(1)
Non-Core
Core Operation
Total
Unit
Bank
Consolidated
(1,744)(1) 4,858
(3,402)
1,456(1)
203
0
0
0
276
479
171
650
313
109
318
552
(7)
1,287
45
1,331
26
1,142
6
11
5
50
8
1
20
536
64
1,740
5
1,296
69
3,036
0
57
14
7
0
79
0
79
4,843
1,290
1,170
2,123
(919)
8,507
(1,886)
6,621
Audited.
Credit Valuation Adjustments/Debit Valuation Adjustments/Funding Valuation Adjustments.
2012
Corporate
Deutsche
Private
(unaudited, unless
Banking
Global
Asset &
&
Consolidation
Non-Core
stated otherwise)
&
Transaction
Wealth
Business
&
Core Operation
Total
in € m.
Bank
Unit
Consolidated
IBIT (IFRS) . . . . . . . .
2,904
665(1)
154(1) 1,519(1)
(1,493)(1) 3,749
(2,935)
814(1)
CVA/DVA/FVA(2) . .
Cost-to-achieve . .
Other
severance . . . . .
Litigation . . . . . . . .
Impairment of
goodwill and
other intangible
assets . . . . . . . .
IBIT adjusted . . . . .
1
2
(350)
304
0
41
0
105
0
440
0
1
(350)
892
0
13
(350)
905
102
790
24
303
42
64
19
1
55
457
243
1,615
4
992
247
2,607
1,174
73
202
15
(0)
1,465
421
1,886
4,923
1,106
568
1,995
(980)
7,613
(1,505)
6,109
Audited.
Credit Valuation Adjustments/Debit Valuation Adjustments/Funding Valuation Adjustments.
Non-GAAP Financial Measures and Forward-Looking Statements
When used with respect to future periods, Deutsche Bank’s non-GAAP financial measures are also forwardlooking statements. Deutsche Bank cannot predict or quantify the levels of the most directly comparable
financial measures under IFRS or the Basel capital rules that would correspond to these non-GAAP financial
measures for future periods. This is because neither the magnitude of such IFRS or Basel capital rule
financial measures, nor the magnitude of the adjustments to be used to calculate the related non-GAAP
financial measures from such IFRS or Basel capital rule financial measures, can be predicted. Such
adjustments, if any, will relate to specific, currently unknown, events and in most cases can be positive or
negative, so that it is not possible to predict whether, for a future period, the non-GAAP financial measure
will be greater than or less than the related IFRS or Basel capital rule financial measure.
Statutory Auditors
The independent auditors of the Company are KPMG Aktiengesellschaft Wirtschaftsprüfungsgesellschaft
(“KPMG”), Klingelhöferstraße 18, 10785 Berlin, Germany. The non-consolidated financial statements
prepared in accordance with the German Commercial Code (HGB) as of and for the fiscal year ended
December 31, 2013 and the consolidated financial statements prepared in accordance with IFRS as of and
for the fiscal years ended December 31, 2013, 2012 and 2011 have been audited by KPMG, and an
unqualified auditor’s report has been issued in each case. In addition, KPMG has reviewed the condensed
96
consolidated interim financial statements prepared in accordance with IFRS as of and for the three-month
period ended March 31, 2014 and provided a review report which is included in the section “Financial
Statements” of this Prospectus. KPMG is a member of the German Chamber of Public Accountants
(Wirtschaftsprüferkammer).
Documents on Display
For the period during which this Prospectus remains valid, printed copies of the following documents are
available for inspection during regular business hours at the Company’s offices at Taunusanlage 12, 60325
Frankfurt am Main, Germany:
• the Articles of Association of the Company;
• the reviewed IFRS condensed consolidated interim financial statements of Deutsche Bank AG as of and
for the three months ended March 31, 2014;
• the audited HGB non-consolidated financial statements of Deutsche Bank AG as of and for the fiscal
year ended December 31, 2013; and
• the audited IFRS consolidated financial statements of Deutsche Bank AG as of and for the fiscal years
ended December 31, 2013, 2012 and 2011, respectively.
In addition, these documents are available on the investor relations website of Deutsche Bank
(www.db.com/ir).
97
THE OFFERING
Subject Matter of the Offering
The subject matter of the Offering are 299,841,985 new, no par value ordinary registered shares of
Deutsche Bank AG (the New Shares), each with a notional value of € 2.56 per share in the share capital and
with full dividend rights as from January 1, 2014.
The New Shares will result from the capital increase against cash contributions from authorized capital
resolved by the Management Board on June 5, 2014 and approved by the Supervisory Board’s Chairman’s
Committee, to which such competence was delegated, on the same date. Exercising the authorizations
pursuant to Section 4 para. 6 and 7 of the Articles of Association of Deutsche Bank AG (authorized capital),
the Management Board of Deutsche Bank AG resolved on June 5, 2014, and the Supervisory Board’s
Chairman’s Committee, to which such competence was delegated, approved on the same date, to increase
the share capital from € 2,763,343,733.76 by € 767,595,481.60 to € 3,530,939,215.36 by issuing
299,841,985 New Shares against cash contributions at a subscription price of €22.50 per New Share. The
shareholders will be granted indirect subscription rights in this process. The New Shares will be offered to
shareholders at a subscription ratio of 18 : 5, i.e. 5 New Shares may be acquired at the subscription price
for every 18 existing shares. Subscription for one single New Share or for integral multiples of a single
share is possible. The subscription rights of the shareholders are excluded in regard to a fractional amount
of up to 100,000 New Shares resulting from the application of the subscription ratio and from the number
of New Shares that could be subscribed with regard to the existing shares held by the Company if the
shares were not held by the Company (which may not exercise subscription rights with respect to own
shares) so that such subscription rights would otherwise be attributed on a pro-rata basis to shareholders
and would result in fractions. The number of New Shares for which the subscription rights have been
excluded with regard to existing shares held by the Company is based on the number of own shares as of
the evening of June 5, 2014 (record date).
Based on the Underwriting Agreement entered into on May 18, 2014, the Underwriters have agreed,
subject to certain conditions, to subscribe for the New Shares and to offer such shares (excluding such
shares for which subscription rights have been excluded to avoid fractions) in public offerings in Germany,
the United Kingdom and the United States to the Company’s shareholders in connection with an indirect
subscription right at the subscription ratio and at the subscription price per New Share of € 22.50 (the
“Subscription Offer”). In Canada the New Shares will be offered to the Company’s shareholders under a
Canadian offering memorandum only in those jurisdictions in Canada and to those persons where and to
whom they may be lawfully offered for sale in Canada, and therein only by persons permitted to sell such
New Shares in Canada. Any New Shares remaining unsubscribed in connection with the Subscription Offer,
as well as the fractional amount excluded from the subscription rights of the shareholders, will be offered
for sale in a public offering in the United States and in private placements to investors in Germany and in
certain other jurisdictions (excluding Japan).
Under certain circumstances, the Offering may be terminated, see also “—Subscription Offer—Important
Notices”.
Scheduled Timetable
The scheduled timetable for the Offering is as follows:
June 5, 2014
Approval of the Prospectus by the BaFin; notification of the
Prospectus to the competent regulatory authority in the United
Kingdom; publication of the Prospectus on the Internet website of
Deutsche Bank AG (www.db.com/ir).
Publication of the Subscription Offer in the German Federal Gazette
(Bundesanzeiger).
Book entry credit of the subscription rights of the shareholders of
Deutsche Bank AG as of (the evening of) June 5, 2014.
June 6, 2014
Publication of the Subscription Offer in the Frankfurter Allgemeine
Zeitung and the Börsen-Zeitung.
Start of the Subscription Period and subscription rights trading on the
Frankfurt Stock Exchange and the New York Stock Exchange.
June 18, 2014
End of subscription rights trading on the New York Stock Exchange.
June 20, 2014
End of subscription rights trading on the Frankfurt Stock Exchange.
98
On or about
June 23, 2014
Expected registration of the implementation of the capital increase
from authorized capital with the Commercial Register.
June 24, 2014
End of Subscription Period; latest possible date for payment of the
subscription price.
On or about
June 24, 2014
Expected delivery of global share certificate evidencing the New
Shares to Clearstream.
Expected admission decision by the Frankfurt Stock Exchange and
the stock exchanges of Berlin, Dusseldorf, Hamburg, Hanover,
Munich and Stuttgart.
On or about
June 25, 2014
Delivery of the subscribed New Shares to be held in collective
custody and inclusion of the New Shares in the existing listing at the
Frankfurt Stock Exchange and the stock exchanges of Berlin,
Dusseldorf, Hamburg, Hanover, Munich and Stuttgart and at the
New York Stock Exchange.
On or about
June 27, 2014
Delivery of the New Shares that were not subscribed during the
Subscription Period or excluded from the subscription rights and sold
to investors in the United States and in private placements.
This Prospectus will be published on the Internet website of Deutsche Bank AG (www.db.com/ir). Printed
copies of the Prospectus will be available for distribution free-of-charge at Deutsche Bank AG, Grosse
Gallusstrasse 10-14, 60311 Frankfurt am Main, during regular business hours.
Subscription Offer
An English translation of the German language Subscription Offer expected to be published on June 5,
2014 in the German Federal Gazette (Bundesanzeiger) and on June 6, 2014 in the Frankfurter Allgemeine
Zeitung and the Börsen-Zeitung is reproduced below:
“Deutsche Bank Aktiengesellschaft
Frankfurt am Main
ISIN DE0005140008 /WKN 514 000
Subscription Offer
On June 5, 2014, the Management Board of Deutsche Bank Aktiengesellschaft resolved, with approval of
the Supervisory Board’s Chairman’s Committee, to which such competence was delegated, on the same
date, to exercise the authorizations pursuant to Section 4 para. 6 and 7 of the Articles of Association of
Deutsche Bank Aktiengesellschaft (Authorized Capital) (relying fully on para. 7, and partially on para. 6) and
to increase the share capital from € 2,763,343,733.76 by € 767,595,481.60 to € 3,530,939,215.36 by
issuing 299,841,985 new, no par value ordinary registered shares (the “New Shares”) against cash
contributions. Except for a fractional amount of shares, in respect of which the shareholders’ subscription
right is excluded, the New Shares will be offered for subscription at the subscription price stated below and
are fully entitled to dividends as from January 1, 2014.
In connection with the capital increase, the shareholders of Deutsche Bank Aktiengesellschaft will be
granted the statutory subscription right in the form of an indirect subscription right pursuant to
Section 186(5) of the German Stock Corporation Act (Aktiengesetz – AktG). The subscription right of the
shareholders is excluded for a fractional amount of up to 100,000 New Shares. The fractional amount
results from the application of the subscription ratio and from the number of New Shares that could be
subscribed with regard to the existing shares held by the Company if the shares were not held by the
Company (which may not exercise subscription rights with respect to own shares). Such subscription rights
would otherwise be attributed on a pro-rata basis to shareholders and would result in fractions. The number
of New Shares for which the subscription rights have been excluded with regard to existing shares held by
the Company is based on the number of own shares as of the evening of June 5, 2014 (record date).
Based on an underwriting agreement dated May 18, 2014 (“Underwriting Agreement”), the members of a
syndicate of 25 financial institutions led by UBS Limited, Banco Santander, S.A., Barclays Bank PLC,
COMMERZBANK Aktiengesellschaft, Goldman Sachs International and J.P. Morgan Securities plc (the
“Underwriters”) have agreed, under certain conditions, (i) to subscribe and acquire the New Shares and
(ii) to offer the New Shares excluding the share fractional amount to the shareholders in connection with an
indirect subscription right during the subscription period at the subscription ratio and at the subscription
price per New Share (“Subscription Offer”). The implementation of the capital increase is scheduled to be
registered with the Commercial Register of the Local Court of Frankfurt am Main on or about June 23,
2014.
99
As of the evening of June 5, 2014, Clearstream Banking AG, Mergenthalerallee 61, 65760 Eschborn,
Germany, will automatically credit to the depositary banks the subscription rights (ISIN DE000A11QV10,
WKN A11QV1) relating to the existing shares of the Company (ISIN DE0005140008, WKN 514 000), to the
extent they are being held in collective custody.
We kindly request our shareholders to exercise their subscription rights to the New Shares during
the period
from and including June 6, 2014 up to and including June 24, 2014
through their depositary bank at one of the subscription agents referred to below during ordinary
business hours. Subscription rights that are not exercised during this period will expire and become
worthless. No compensation will be awarded for subscription rights that will not be exercised.
Subscription agents are the German branches of:
Pursuant to the subscription ratio of 18 : 5, 5 New Shares may be acquired at the subscription price for
every 18 existing shares of Deutsche Bank Aktiengesellschaft. Subscription for one single New Share or for
integral multiples of a single share is possible. The exercise of the subscription rights is subject to the
registration of the implementation of the capital increase with the Commercial Register and is also subject
to the further restrictions described in the section “Important Notices”.
Subscription Price
The subscription price for each New Share subscribed amounts to € 22.50. The subscription price has to be
paid at the latest on the final day of the subscription period (June 24, 2014). The depositary banks will
charge customary fees for the subscription.
Subscription Rights Trading
In connection with the offering of the New Shares, the subscription rights will be traded on the stock
exchange. The subscription rights (ISIN DE000A11QV10), or fractions thereof, for the New Shares will be
traded during the period from June 6, 2014 up to and including June 20, 2014 on the regulated market
(XETRA and XETRA Frankfurt Specialist) of the Frankfurt Stock Exchange. The subscription rights will also
be traded on the New York Stock Exchange. The Company does not intend to apply for subscription rights
trading on any other stock exchange. The subscription agents are prepared to act as brokers in the buying
and selling of subscription rights on the stock exchange, if possible. No compensation will be awarded for
any subscription rights not exercised. Upon expiration of the subscription period, the unexercised
subscription rights will expire and become worthless.
As of June 6, 2014, the existing shares of Deutsche Bank Aktiengesellschaft (ISIN DE0005140008) will be
quoted “ex-rights” on the regulated markets of the Frankfurt Stock Exchange and of the stock exchanges
of Berlin, Dusseldorf, Hamburg, Hanover, Munich and Stuttgart, and the New York Stock Exchange.
UBS Limited may take appropriate measures to provide liquidity for an orderly subscription rights trading,
including, in particular, the buying and selling of subscription rights, or fractions thereof, for New Shares.
There is, however, no corresponding obligation to do so. In this respect, UBS Limited reserves the right to
enter into hedging transactions in shares of the Company or corresponding derivatives.
Important Notices
Before making a decision to exercise, acquire or sell any subscription rights, or to acquire any
shares, shareholders and investors are advised to carefully read the securities prospectus dated
June 5, 2014 (the “Prospectus”) which is available on the Internet website of Deutsche Bank
Aktiengesellschaft (www.db.com/ir).
Under certain conditions, the Underwriters are entitled to withdraw from the Underwriting
Agreement or to postpone the implementation of the Subscription Offer. These conditions include
material adverse changes in the financial condition or results of operations of Deutsche Bank
Aktiengesellschaft (other than as disclosed in this Prospectus) and its subsidiaries, significant
restrictions on stock exchange trading or commercial banking activities, the outbreak or escalation
of hostilities, the declaration of a state of national emergency by the Federal Republic of Germany,
the United Kingdom or the United States of America or other catastrophies or crises involving
Germany, the United Kingdom or the United States and having or expected to have material
adverse impacts on financial markets. The Underwriters’ obligation will also end if the
implementation of the capital increase has not been registered by June 25, 2014, 12.00 a.m.
100
(midnight) CEST, with the Commercial Register of the Local Court of Frankfurt am Main, and the
Company and the Underwriters fail to agree on a later date. A right of withdrawal also exists if the
New Shares are not admitted to trading by or on June 25, 2014.
In the event of a withdrawal from the Underwriting Agreement prior to registration of the
implementation of the capital increase with the Commercial Register, the subscription rights of the
shareholders will expire without compensation. An unwinding of trading transactions relating to
subscription rights by the agents brokering the subscription rights transactions will not take place
in such a case, so that investors who purchased subscription rights via a stock exchange would
suffer a loss. If the Underwriters withdraw from the Underwriting Agreement following registration
of the implementation of the capital increase with the Commercial Register, the shareholders who
have exercised their subscription rights may acquire New Shares at the subscription price.
In the event of a withdrawal by the Underwriters from the Underwriting Agreement after the
Subscription Offer has been completed, which is also possible following delivery, settlement and
the listing of the New Shares subscribed for in the Offering, such withdrawal would only apply to
New Shares that were not subscribed for. Share purchase agreements for unsubscribed New Shares
are thus subject to reservations. If short-selling has occurred as of the time of cancellation of
booking of the shares, it is solely the seller of such New Shares who bears the risk of being unable
to meet its obligation to deliver New Shares.
Sale of Unsubscribed New Shares
The New Shares remaining unsubscribed in the Subscription Offer and the share fractional amount
excluded from the subscription right of the shareholders will be offered for sale in a public offering in the
United States and in private placements to investors in the Federal Republic of Germany and certain other
jurisdictions (excluding Japan).
Share Certificates and Delivery of the New Shares
The New Shares will be represented by a global share certificate deposited with Clearstream Banking AG
and with the sub-agent specified under the global share structure of Deutsche Bank Aktiengesellschaft for
the United States of America. According to the Articles of Association, the shareholders shall not be
entitled to share certificates, dividend or renewal coupons, provided these are not required to be granted
pursuant to the rules of a stock exchange by which the shares have been admitted to trading. The New
Shares are vested with the same rights as all other shares of the Company and are not vested with any
additional rights or benefits. The New Shares acquired pursuant to this Subscription Offer are expected to
be delivered on or about June 25, 2014, and the New Shares acquired in private placements are expected
to be delivered after the conclusion of the private placements on or about June 27, 2014, in each case by
crediting the New Shares to the collective custodial account, unless the subscription period has been
extended.
Stock Exchange Admission and Trading of the New Shares
Applications for admission of the New Shares to the regulated market of the Frankfurt Stock Exchange with
simultaneous admission to the sub-segment of the regulated market with additional post-admission
obligations (Prime Standard) of the Frankfurt Stock Exchange and to the regulated market of the stock
exchanges of Berlin, Dusseldorf, Hamburg, Hanover, Munich and Stuttgart are expected to be filed on
June 6, 2014. The admission decisions are expected on June 24, 2014. The start of trading and inclusion of
the New Shares in the existing listing on the German stock exchanges is expected on or about June 25,
2014. The inclusion of the New Shares in the existing listing on the New York Stock Exchange is expected
at the same time.
Publication of the Prospectus
In connection with the Subscription Offer, a securities prospectus dated June 5, 2014 (the “Prospectus”)
has been published on the Internet website of Deutsche Bank Aktiengesellschaft (www.db.com/ir). Printed
copies of the Prospectus will be available for distribution free-of-charge at Deutsche Bank
Aktiengesellschaft, Grosse Gallusstrasse 10-14, 60311 Frankfurt am Main, during regular business hours.
Selling Restrictions
This document does not constitute an offering for the sale of securities in the United States of America
(“United States”). The subscription rights and the New Shares may not be offered or sold in the United
States without being registered or exempted from the registration requirement. Deutsche Bank
Aktiengesellschaft has filed a registration statement with the U.S. Securities and Exchange Commission
(“SEC”) to register the subscription rights and the New Shares or a portion of the subscription rights and
101
the New Shares in the United States. The public offering of the subscription rights and the New Shares in
the United States is based on a prospectus available from Deutsche Bank Aktiengesellschaft or on the SEC
website and containing detailed information about Deutsche Bank Aktiengesellschaft, its administrative and
executive bodies, and financial information about Deutsche Bank Aktiengesellschaft.
Any issue, offering and sale of the subscription rights and New Shares in Canada will be made under a
Canadian offering memorandum only in those jurisdictions in Canada and to those persons where and to
whom they may be lawfully offered for sale in Canada, and therein only by persons permitted to sell such
subscription rights and New Shares in Canada. The Canadian offering memorandum will consist of the U.S.
prospectus and additional prescribed Canadian disclosure. In connection with the issue of the subscription
rights and sale of New Shares to existing shareholders in Canada, the Company is required to file a rights
offering notice, together with related documentation, and the Canadian offering memorandum with the
Canadian securities regulatory authorities and make the Canadian offering memorandum available to
shareholders in Canada in order for subscription rights to be issued to shareholders in Canada under an
exemption from the requirement to file a prospectus with the Canadian securities regulatory authorities.
The acceptance of this offer outside the Federal Republic of Germany may be subject to restrictions.
Persons who intend to accept this offer outside the Federal Republic of Germany are requested to inform
themselves of and comply with the restrictions that exist outside the Federal Republic of Germany.
Stabilization
In connection with the offering of the New Shares, UBS Limited will be acting as the stabilization manager
and it (or one of its affiliates) may take measures to support the stock exchange or market price of the
shares of Deutsche Bank Aktiengesellschaft in order to offset any existing selling pressure in such shares
(stabilization measures).
The stabilization manager has no obligation to undertake stabilization measures. Accordingly, it cannot be
guaranteed that stabilization measures will be taken at all. If stabilization measures are taken, they may be
discontinued at any time without prior announcement.
Such stabilization measures may be taken as from the date of the publication of the Subscription Offer and
must cease at the latest on the 30th calendar day following expiration of the subscription period, expected
to be July 24, 2014 (stabilization period).
Stabilization measures may result in a (quoted) market price of the shares of the Company that is higher
than would be the case in the absence of such measures. Furthermore, the (quoted) market price may
temporarily reach a level that is not sustainable.
Within one week of the end of the stabilization period, a notice will be published via a so-called media
bundle within the meaning of Sec. 3a of the German Regulation for the Clarification of the Notification,
Communication and Publication Obligations and the Duty to Maintain Insider Lists pursuant to the WpHG
(Wertpapierhandelsanzeige- und Insiderverzeichnisverordnung – WpAIV) stating whether or not a
stabilization measure has been taken, the date on which stabilization began, the date on which the last
stabilization measure was taken and the price range within which stabilization was conducted, specifically
for each date on which a share price stabilization measure was taken.
Frankfurt am Main, June 2014
The Management Board”
Subscription Price
The subscription price per subscribed New Share (“Subscription Price”) amounts to € 22.50.
Allotment of Subscription Rights
Each existing share of the Company (ISIN DE0005140008, WKN 514000) entitles to one subscription right,
except for own shares held by the Company and the fractional amount for which subscription rights have
been excluded. As of the evening of June 5, 2014, Clearstream Banking AG will automatically credit to the
depositary banks the subscription rights with regard to the shares of the Company. As of June 6, 2014, the
existing shares of Deutsche Bank AG will be quoted “ex-rights” on the regulated markets of the Frankfurt
Stock Exchange and of the stock exchanges of Berlin, Dusseldorf, Hamburg, Hanover, Munich and
Stuttgart, as well as on the New York Stock Exchange.
Holders of existing shares through Clearstream Banking AG that are credited to The Depository Trust
Company will neither be allotted nor be permitted to exercise their subscription rights through Clearstream
Banking AG. Such holders should refer to the U.S. prospectus for information regarding the allocation and
exercise of their subscription rights, see section “General Information—Subject Matter of the Prospectus”.
102
Exercise of Subscription Rights
Pursuant to the subscription ratio of 18 : 5, 5 New Shares may be acquired at the Subscription Price for
every 18 existing shares of Deutsche Bank AG. Subscription rights must be exercised during the period
from and including June 6, 2014 up to and including June 24, 2014 at one of the subscription agents.
Instructions by investors regarding the exercise of subscription rights have to be addressed to their
respective depositary banks. Investors are recommended to follow the respective instructions by their
depositary banks.
Sale of Subscription Rights
The subscription rights are freely transferable. To the extent the terms and conditions of the depositary
banks provide so, these banks will attempt to sell the subscription rights at the best possible price, unless
the shareholder entitled to the subscription issues an instruction regarding the exercise of its subscription
rights.
Subscription Rights Remaining Unexercised
Subscription rights remaining unexercised will expire and become worthless.
Underwriters and Underwriting Agreement
The banks underwriting the Offering are UBS Limited, Banco Santander, S.A., Barclays Bank PLC,
COMMERZBANK Aktiengesellschaft, Goldman Sachs International, J.P. Morgan Securities plc, ABN AMRO
Bank N.V., Banca IMI S.p.A., Banco Bilbao Vizcaya Argentaria, S.A., Citigroup Global Markets Limited, ING
Bank N.V., Mediobanca - Banca di Credito Finanziario S.p.A., SOCIETE GENERALE and UniCredit Bank AG
(together the Joint Bookrunners) and Bankhaus Lampe KG, CREDIT AGRICOLE CORPORATE AND
INVESTMENT BANK, DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Jefferies International Limited,
Mizuho International plc, NATIXIS, Nomura International plc, Raiffeisen Centrobank AG, RBC Europe
Limited, Standard Chartered Bank and Wells Fargo Securities International Limited (together the Co-Lead
Managers, and together with the Joint Bookrunners, the Underwriters). The Company and the Underwriters
entered into an Underwriting Agreement on May 18, 2014. In this Underwriting Agreement, the
Underwriters have agreed, under certain conditions, to underwrite and acquire all of the New Shares and
offer them (excluding a fractional amount) to the shareholders of the Company for subscription.
The following table presents the percentage of New Shares underwritten by the respective Underwriter
pursuant to the Underwriting Agreement:
Underwriter
UBS Limited, 1 Finsbury Avenue, London EC2M 2PP, United Kingdom . . . . . . . . . . . . . . . . . . . . . .
Banco Santander, S.A., Paseo de Pereda, 9-12, 39004 Santander, Spain . . . . . . . . . . . . . . . . . . . . .
Barclays Bank PLC, 5 The North Colonnade, Canary Wharf, London E14 4BB, United Kingdom . .
COMMERZBANK Aktiengesellschaft, Kaiserstrasse 16 (Kaiserplatz), 60311 Frankfurt am Main,
Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goldman Sachs International, Peterborough Court, 133 Fleet Street, London EC4A 2BB,
United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
J.P. Morgan Securities plc, 25 Bank Street, Canary Wharf, London E14 5JP, United Kingdom . . .
ABN AMRO Bank N.V., Gustav Mahlerlaan 10, 1000 EA Amsterdam, Netherlands . . . . . . . . . . . . .
Banca IMI S.p.A., Largo Mattioli, 3, 20121 Milan, Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Banco Bilbao Vizcaya Argentaria, S.A., Plaza de San Nicolás, 4, 48005 Bilbao, Spain . . . . . . . . . . . .
Citigroup Global Markets Limited, Citigroup Centre, Canada Square, Canary Wharf,
London E14 5LB, United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ING Bank N.V., Bijlmerplein 888, 1102 MG Amsterdam, The Netherlands . . . . . . . . . . . . . . . . . . . .
Mediobanca - Banca di Credito Finanziario S.p.A., Piazzetta Enrico Cuccia 1, 20121 Milan, Italy . .
SOCIETE GENERALE, 29 Boulevard Haussmann, 75009 Paris, France . . . . . . . . . . . . . . . . . . . . . . .
UniCredit Bank AG, Kardinal-Faulhaber-Straße 1, 80333 Munich, Germany . . . . . . . . . . . . . . . . . . .
Bankhaus Lampe KG, Alter Markt 3, 33602 Bielefeld, Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, 9 quai du Président Paul Doumer,
92920 Paris La Défense Cedex, France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DZ BANK AG Deutsche Zentral-Genossenschaftsbank, Platz der Republik, 60265 Frankfurt am
Main, Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Jefferies International Limited, Vintners Place, 68 Upper Thames Street, London EC4V 3BJ,
United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mizuho International plc, Bracken House, 1 Friday Street, London EC4M 9JA, United Kingdom . .
NATIXIS, 30 avenue Pierre Mendès, 75013 Paris, France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nomura International plc, 1 Angel Lane, London EC4R 3AB, United Kingdom . . . . . . . . . . . . . . . . .
Raiffeisen Centrobank AG, Tegetthoffstraße 1, 1015 Vienna, Austria . . . . . . . . . . . . . . . . . . . . . . . .
RBC Europe Limited, Riverbank House, 2 Swan Lane, London EC4R 3BF, United Kingdom . . . . .
Standard Chartered Bank, 1 Basinghall Avenue, London EC2V 5DD, United Kingdom . . . . . . . . . .
Wells Fargo Securities International Limited, 1 Plantation Place, 30 Fenchurch Street,
London EC3M 3BD, United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Percentage of
New Shares
8.7%
8.7%
8.7%
8.7%
8.7%
8.7%
4.6%
4.6%
4.6%
4.6%
4.6%
4.6%
4.6%
4.6%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
1.0%
103
Any shares remaining unsubscribed in the Subscription Offer and the fractional amount excluded from the
subscription right will be offered by the Underwriters in a public offering in the United States and in private
placements to investors in Germany and certain other jurisdictions (excluding Japan) for purchase, and will
be sold at the best possible price.
Pursuant to the terms and conditions of the Underwriting Agreement, Deutsche Bank AG is required to pay
an underwriting and management commission in the maximum amount of approximately € 119 million to
the Underwriters. In the Underwriting Agreement, the Company has agreed to indemnify the Underwriters
against certain liabilities.
The Underwriting Agreement also provides that the obligations of the Underwriters are subject to the
satisfaction of certain conditions, including, for example, the receipt of a customary confirmation and legal
opinions satisfactory to the requirements of the Underwriters.
For further information about the right available to the Underwriters to withdraw from the Underwriting
Agreement see “—Subscription Offer—Important Notices”.
Lock-up Agreement
During the period commencing on May 18, 2014 and ending six months after the first day of trading of the
New Shares on the Frankfurt Stock Exchange, the stock exchanges of Berlin, Dusseldorf, Hamburg,
Hanover, Munich and Stuttgart and the New York Stock Exchange, without the prior written consent of
UBS Limited, which consent may not be unreasonably withheld or delayed, the Company will not, to the
extent permitted by German corporate law (im Rahmen des aktienrechtlich Zulässigen):
(i)
exercise an authorization pursuant to its Articles of Association to increase its capital;
(ii)
except for the proposals contained in the invitation for the annual general meeting 2014, submit a
proposal for a capital increase or the issuance of financial instruments convertible into shares of the
Company or with option rights for shares of the Company to any meeting of the shareholders for
resolution (except for authorizations pursuant to Section 202 or Section 221(2) of the German Stock
Corporation Act and the creation of a related conditional capital);
(iii) offer, pledge, allot, issue (unless being required by applicable law), sell, contract to sell, sell any option
to purchase or contract to purchase, purchase any option to sell, grant any option, right or warrant to
purchase, or otherwise transfer or dispose of, directly or indirectly, any shares in its capital or any
securities convertible into or exercisable or exchangeable for shares in its capital or enter into any swap
or other arrangement that transfers to a third party, in whole or in part, the economic risk of ownership
of shares in its capital, whether any such transaction described above is to be settled by delivery of
shares in its capital or such other securities, in cash or otherwise.
The foregoing restrictions will not apply to (i) the New Shares to be sold under the Underwriting
Agreement, (ii) contingent capital instruments (including the CRR/CRD 4 Additional Tier 1 (“AT1”)
securities) issued or to be issued by the Company (aa) mandatorily or voluntarily convertible into shares of
the Company, or (bb) being combined with any option, right or warrant to purchase any existing share or
new share, or (cc) granting any participation rights (Genussrechte), or (dd) other instruments related to or
combining any such instruments described under (aa) – (cc), in each case irrespective of whether or not
subscription rights will be granted to the shareholders of the Company, (iii) for the purpose of issuing or
otherwise distributing or allocating shares of the Company or options for shares of the Company or other
instruments related to shares of the Company to directors (including members of the Management Board
or Supervisory Board) or employees of the Company or any of its subsidiaries under a customary directors’
(including members of the Management Board or Supervisory Board) and/or employees’ stock option, share
participation or other employee incentive plan or otherwise related to equity compensation of directors
(including members of the Management Board or Supervisory Board) or employees of the Company,
(iv) sales of treasury shares (or derivative transactions related thereto) carried out in a manner consistent
with the Company’s normal treasury activity, (v) hedging, market making and brokerage activities in the
ordinary course of the Company’s or any of its affiliates trading activities, and (vi) transactions by the
Company or any of its affiliates in execution of customer orders.
For the avoidance of doubt, the foregoing restrictions do not apply to the issuance of new shares of the
Company to Paramount Services Holdings Ltd., which occurred prior to the Offering. There is no lock-up
agreement between Paramount Services Holdings Ltd. and the Company in connection with the Offering.
Selling Restrictions
This document does not constitute an offering for the sale of securities in the United States. Securities may
not be offered or sold in the United States without being registered or exempted from the registration
104
requirement. Deutsche Bank AG has filed a registration statement with the SEC to register the securities or
a portion of the securities in the United States. The public offering of the securities in the United States is
based on a separate prospectus and a prospectus supplement available from Deutsche Bank AG or on the
SEC website and containing detailed information about Deutsche Bank AG, its administrative and executive
bodies, and financial information about Deutsche Bank AG.
The acceptance of the subscription offer outside Germany may be subject to restrictions. Persons who
intend to accept the subscription offer outside Germany are requested to inform themselves of and comply
with the restrictions that exist outside Germany.
Sales in the United Kingdom are also subject to restrictions. Each of the Underwriters has severally
represented, warranted and agreed to the Company in the form of an independent guarantee and
irrespective of negligence that:
(i)
it has only communicated and caused to be communicated and will only communicate or cause to be
communicated any invitation or inducement to engage in investment activity (within the meaning of
Section 21 of the FSMA) received by it in connection with the issue or sale of any New Shares in
circumstances in which Section 21(1) of the FSMA does not apply to the Company; and
(ii)
it has complied and will comply with all applicable provisions of the FSMA with respect to anything
done by it in relation to the New Shares in, from or otherwise involving the United Kingdom.
In the Underwriting Agreement, the Underwriters have also represented and warranted that in relation to
each Member State of the European Economic Area which has implemented the Prospectus Directive
(Directive 2003/71/EC) (each a “Relevant Member State”), with effect from and including the date on which
the Prospectus Directive is implemented in the Relevant Member State, it has not made and will not make
an offer of the New Shares to the public in that Relevant Member State other than in Germany and the
United Kingdom, all in accordance with the Prospectus Directive, except that it may make an offer of New
Shares in that Relevant Member State at any time under the following exemptions under the Prospectus
Directive, if they have been implemented in that Relevant Member State:
(i)
to any qualified investor as defined in the Prospectus Directive, or
(ii)
in any other circumstances falling within Article 3(2) of the Prospectus Directive;
provided that no such offer (as set forth in clauses (i) to (ii)) of New Shares shall result in a requirement for
the publication by the Company or any Underwriter of a prospectus pursuant to Article 3 of the Prospectus
Directive.
For the purposes of this restriction, the expression an “offer to the public” in relation to any New Shares in
any Relevant Member State means the communication in any form and by any means of sufficient
information on the terms of the offer and the New Shares so as to enable an investor to decide to purchase
or subscribe to any New Shares, as the same may be varied in that Relevant Member State by any
measure implementing the Prospectus Directive in that Relevant Member State, and the expression
“Prospectus Directive” includes any relevant implementing measure in each Relevant Member State. To
the extent a Relevant Member State has implemented Directive 2010/73/EC of the European Parliament
and the Council amending the Prospectus Directive (the “Amending Prospectus Directive”), any reference
herein to the Prospectus Directive shall be read as a reference to the Prospectus Directive as amended by
the Amending Prospectus Directive.
Any issue, offering and sale of securities in Canada will be made under a Canadian offering memorandum
only in those jurisdictions in Canada and to those persons where and to whom they may be lawfully offered
for sale in Canada, and therein only by persons permitted to sell such securities in Canada. The Canadian
offering memorandum will consist of the U.S. prospectus and additional prescribed Canadian disclosure. In
connection with the issue of the subscription rights and sale of New Shares to existing shareholders in
Canada, the Company is required to file a rights offering notice, together with related documentation, and
the Canadian offering memorandum with the Canadian securities regulatory authorities and make the
Canadian offering memorandum available to shareholders in Canada in order for subscription rights to be
issued to shareholders in Canada under an exemption from the requirement to file a prospectus with the
Canadian securities regulatory authorities.
Stabilization
In connection with the offering of the New Shares, UBS Limited will be acting as the stabilization manager
and it (or one of its affiliates) may take measures to support the stock exchange or market price of the shares
of Deutsche Bank AG in order to offset any existing selling pressure in such shares (stabilization measures).
The stabilization manager has no obligation to undertake stabilization measures. Accordingly, it cannot be
guaranteed that stabilization measures will be taken at all. If stabilization measures are taken, they may be
discontinued at any time without prior announcement.
105
Such stabilization measures may be taken as from the date of the publication of the Subscription Offer and
must cease at the latest on the 30th calendar day following expiration of the subscription period, expected
to be July 24, 2014 (stabilization period).
Stabilization measures may result in a (quoted) market price of the shares of the Company that is higher
than would be the case in the absence of such measures. Furthermore, the (quoted) market price may
temporarily reach a level that is not sustainable.
Within one week of the end of the stabilization period, a notice will be published via a so-called media
bundle within the meaning of Section 3a of the German Regulation for the Clarification of the Notification,
Communication and Publication Obligations and the Duty to Maintain Insider Lists pursuant to the WpHG
(Wertpapierhandelsanzeige- und Insiderverzeichnisverordnung – WpAIV) stating whether or not a
stabilization measure has been taken, the date on which stabilization began, the date on which the last
stabilization measure was taken and the price range within which stabilization was conducted, specifically
for each date on which a share price stabilization measure was taken.
Interests of Persons Participating in the Offering
In connection with the Offering, the Underwriters have a contractual relationship with the Company. On
successful completion of the Offering, the Underwriters will receive a commission from the Company.
Certain of the Underwriters and their respective affiliates in a business relationship with Deutsche Bank
have performed, and are likely to perform in the future, certain advisory or other services for Deutsche
Bank, for which they have received, and are likely to receive in the future, customary fees and expenses.
The Company has also performed, and is likely to perform in the future, certain advisory or other services
for certain of the Underwriters or their respective affiliates, for which it has received, and is likely to receive
in the future, customary fees and expenses. The Company and certain of the Underwriters have also acted
as counterparties to other transactions amongst themselves as well as involving third parties in the area of
banking and finance such as underwriting or lending business or trading or derivatives transactions. The
Company expects that it and certain of the Underwriters may also in the future have business relationships
as described above. The Company therefore assumes that the Underwriters have an interest in the
successful completion of the transaction.
If the Underwriters and their affiliated companies, acting as investors on their own account, are
shareholders in the Company, they can receive subscription rights in connection with the subscription offer
and acquire New Shares by exercising these subscription rights. Moreover, they can acquire any New
Shares not purchased as part of the subscription offer and hold, buy or sell subscription rights, New Shares
or other securities of the Company for their own account. They can also offer and/or sell such securities by
means not associated with the Offering. The Underwriters do not intend to disclose the extent of such
investments or transactions, unless they are obligated to do so for legal or regulatory reasons. The
Underwriters may be obligated to undertake transactions in the New Shares, subscription rights or
Company shares for their clients. The Company therefore assumes that the Underwriters have an interest
in the successful completion of the transaction as a whole.
Prior to the Offering, Paramount Services Holdings Ltd. acquired 59,931,506 new shares in the Company at
a price of € 29.20 per share pursuant to a capital increase resolved by the Company on May 18, 2014 (for
further information, see the section “Recent Developments and Outlook” in this Prospectus). Paramount
Services Holdings Ltd. is an investment vehicle ultimately beneficially owned and controlled by His
Excellency Sheikh Hamad Bin Jassim Bin Jabor Al-Thani, who intends to remain an anchor investor in the
Company. In connection with this anchor investment in the Company, Paramount Services Holdings Ltd.
has undertaken to the Company, also for the benefit of the Joint Bookrunners, to exercise in the Offering all
of the subscription rights allotted to its shares in the Company and to subscribe for all New Shares
attributable to such subscription rights. Given the aforementioned investment and commitment, it is the
Company’s understanding that Paramount Services Holdings Ltd. and His Excellency Sheikh Hamad Bin
Jassim Bin Jabor Al-Thani have an interest in the successful completion of the Offering.
106
REASONS FOR THE OFFERING AND USE OF PROCEEDS
Proceeds and Costs of the Offering
Provided that all of the New Shares are subscribed at the Offer Price, the gross proceeds from the Offering
before expenses, commissions or fees will amount to € 6,746 million. The Company expects to incur
underwriting and management commissions and other Offering-related expenses of up to an aggregate
maximum of approximately € 124 million, which includes the underwriting and management commission of
the Underwriters in a maximum amount of € 119 million. The net proceeds before tax received by the
Company will therefore presumably total approximately € 6,622 million.
Reasons for the Offering and Use of Proceeds
Deutsche Bank intends to use the net proceeds of the Offering to further strengthen its regulatory
capitalization and also to provide a buffer against future regulatory uncertainty and challenges ahead not
currently foreseen by Deutsche Bank. Deutsche Bank also plans to use a portion of the proceeds to launch
focused investments in order to take advantage of opportunities which it perceives to be available across its
business. No specific allocations of the proceeds have been determined by Deutsche Bank at the date of
this Prospectus. For further information on Deutsche Bank’s strategy and aspirations reflecting the
completion of the Offering, see the sections “Business—Business Strategy—Deutsche Bank’s Updated
Aspirations” and “—Deutsche Bank’s Update on Strategy 2015+: Key Strategic Measures”.
107
INFORMATION ABOUT THE OFFERED NEW SHARES
Form, Voting Rights
All shares of the Company including the New Shares are no par value ordinary registered shares, each
share representing a notional share in the share capital of the Company in the amount of € 2.56. Each share
confers one vote at the general shareholders’ meeting of the Company. The voting rights are not restricted.
Dividend Rights, Participation in Liquidation Proceeds
The New Shares carry full dividend rights as from January 1, 2014. The New Shares will be entitled to a
share of any liquidation proceeds at the ratio of their notional share in the share capital.
Stock Exchange Admission, Certificate, Delivery
The applications for admission of the New Shares to the regulated market of the Frankfurt Stock Exchange
with simultaneous admission to the sub-segment of the regulated market with additional post-admission
obligations (Prime Standard) of the Frankfurt Stock Exchange and for admission to the regulated market of
the stock exchanges of Berlin, Dusseldorf, Hamburg, Hanover, Munich and Stuttgart is expected to be filed
on June 6, 2014. The decision of the stock exchanges regarding the admission of the New Shares to
trading is expected on or about June 24, 2014. The start of trading and the inclusion of the New Shares in
the existing listing on the German stock exchanges is expected on or about June 25, 2014. The start of
trading of the New Shares on the New York Stock Exchange is also expected on or about June 25, 2014.
The New Shares will be available to the purchasers as co-ownership interests in a global certificate
deposited in collective custody with Clearstream Banking AG, Mergenthalerallee 61, 65760 Eschborn, on or
about June 25, 2014 and with the sub-agent specified under the global share structure of Deutsche Bank
AG for the United States. The rights of the shareholders to certificates representing their New Shares are
excluded.
The New Shares shall be delivered to a collective custody account. If the Subscription Period is not
extended, the New Shares subscribed in connection with the Subscription Offer are expected to be
delivered on or about June 25, 2014, and the New Shares purchased in the private placements are
expected to be delivered upon completion of the private placements, expected on or about June 27, 2014,
in each case by way of book-entry by Clearstream Banking AG, if and to the extent the Underwriting
Agreement is not terminated early (for further details regarding the possible early termination of the
Underwriting Agreement see “The Offering—Subscription Offer—Important Notices”).
Transferability, Selling Restrictions
The transferability of the shares of the Company is restricted neither by law nor by the Articles of
Association of the Company. There are no legal restrictions on their ability to be traded, except for the
restrictions referred to in the section “The Offering—Selling Restrictions”.
ISIN /WKN /Common Code
International Securities Identification
Number (ISIN)
New Shares:
Subscription rights:
DE0005140008
DE000A11QV10
German Securities Identification Number (WKN)
New Shares:
Subscription rights:
514000
A11QV1
Trading Symbol
DBK
DB
(German stock exchanges)
(New York Stock Exchange)
Notices
Pursuant to the Articles of Association, Company notices are to be published in the German Federal
Gazette (Bundesanzeiger). Notices regarding the shares of the Company are also published in the German
Federal Gazette.
Notices concerning stock market announcements are published in the German Federal Gazette.
Paying and Registration Agent
The paying and registration agent for the shares of the Company is Deutsche Bank AG, Taunusanlage 12,
60325 Frankfurt am Main, Germany.
108
DILUTION
The rights of the shareholders to subscribe for the New Shares from the capital increase, excluding the
share fractional amount, ensure that each shareholder exercising its subscription rights will continue to hold
its original, nearly unchanged percentage share in the share capital of the Company. The shareholder’s
percentage ownership in the Company’s share capital and its voting rights will be diluted by 21.7 % if such
shareholder does not exercise any of its subscription rights. If the economic value of the subscription rights
is not taken into account, a capital dilution for the shareholder of € 6.77 per share would result.
The book value of the shareholders’ equity of Deutsche Bank recorded in the condensed consolidated
balance sheet prepared in accordance with IFRS as of March 31, 2014 was € 55,753 million and therefore
€ 54.69 per share of the Company, calculated on the basis of the number of 1,019,499,640 issued shares of
the Company as of March 31, 2014. On an adjusted basis, reflecting the issuance of 59,931,506 new
shares at a placement price of € 29.20 per share to Paramount Services Holdings Ltd. prior to the Offering,
the book value of the total shareholders’ equity of Deutsche Bank would have been € 57,491 million,
corresponding to € 53.26 per share of the Company (based on the 1,079,431,146 shares of the Company
after the pre-placement of new shares to Paramount Services Holdings Ltd. and reflecting estimated
expenses, commissions and fees of approximately € 13 million net of tax in connection with the
pre-placement and the issuance of AT1 Notes, including the premia from the issuance of the AT1 Notes,
which are also reflected in additional paid-in capital).
Based on the foregoing, following the implementation of the capital increase from € 2,763,343,733.76 by
€ 767,595,481.60 to € 3,530,939,215.36 by issuing 299,841,985 New Shares against cash contributions in
connection with this Offering, which is expected to be registered in the Commercial Register of the
Company on June 24, 2014, and at a subscription or, as the case may be, placement price of € 22.50 per
New Share, and following the deduction of the estimated expenses, commissions and fees of the Offering
in the maximum amount of € 113 million net of tax, the book value of the shareholders’ equity of the
Company recorded in the balance sheet under IFRS as of March 31, 2014 would have been € 64,124 million
or € 46.49 per share (condensed consolidated interim financial statements, calculated on the basis of the
number of 1,379,273,131 shares of the Company issued after the implementation of the capital increase in
connection with the Offering).
This corresponds to a dilution in net equity of the Company by € 6.77 or 12.7 % per share for the previous
shareholders. For purchasers of New Shares, this results in an indirect accretion of € 23.99 or 106.6 % per
share, as the adjusted shareholders’ equity of the Company per share exceeds the assumed subscription
or, as the case may be, placement price of € 22.50 per New Share by this amount or this percentage.
109
CAPITALIZATION AND INDEBTEDNESS
The following tables provide an overview of the capitalization, net financial liabilities and irrevocable lending
commitments and contingent liabilities of the Deutsche Bank Group under IFRS on the basis of the condensed
consolidated interim financial statements of the Company as of and for the three-month period ended
March 31, 2014. The capitalization of the Deutsche Bank Group will change after the completion of the
Offering. For details regarding the proceeds from the Offering and their intended use, see “Reasons for the
Offering and Use of Proceeds”. The information in the following tables should be read in conjunction with the
condensed consolidated interim financial statements of the Company as of and for the period ended March 31,
2014 and the related notes, which are included in the “Financial Statements” section of this Prospectus.
Capitalization
The following table provides, on the basis of the condensed consolidated interim financial statements of the
Company as of and for the three-month period ended March 31, 2014, an overview of the capitalization of
the Deutsche Bank Group prior to the Offering and after completion of the Offering. The information also
takes into account the issuance of AT1 Notes with a nominal amount of approximately € 3.5 billion in May
2014 and the issuance of 59,931,506 new shares to Paramount Services Holdings Ltd., an investment
vehicle ultimately beneficially owned and controlled by His Excellency Sheikh Hamad Bin Jassim Bin Jabor
Al-Thani through a capital increase prior to the Offering. The information in the right-hand column is based
on the assumption of a complete placement of the New Shares at the Subscription Price of € 22.50 and
that the Company will receive net proceeds after tax from the Offering in the aggregate amount of
€ 6,634 million.
in € m.
Liabilities(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current liabilities(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
of which secured(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
of which unsecured . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
of which guaranteed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
of which unguaranteed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current liabilities(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
of which secured(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
of which unsecured . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
of which guaranteed(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
of which unguaranteed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subordinated liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trust preferred securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other liabilities(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total of liabilities, subordinated liabilities, trust preferred
securities and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . .
March 31, 2014
March 31, 2014
(prior to the
(after completion
Offering)(1)
of the Offering)(1)
(unaudited, unless
(unaudited)
stated otherwise)
877,810
877,810
734,991
734,991
62,365
62,365
672,626
672,626
0
0
734,991
734,991
142,819
142,819
47,154
47,154
95,665
95,665
1,041(8)
1,041
141,778
141,778
6,365
6,365
10,249(8)
10,249
686,133
686,133
1,580,557(7)(8)
1,580,557
Common shares (no par value), nominal value of € 2.56 . . . . . . . .
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common shares in treasury, at cost . . . . . . . . . . . . . . . . . . . . . . . . .
Equity classified as obligation to purchase common shares . . . . .
Accumulated other comprehensive income (loss), net of tax . . . .
Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Additional equity components . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-controlling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,763
27,577
29,574
(9)(8)
0(8)
(2,415)(8)
57,491
3,468
264(8)
3,531
33,443
29,574
(9)
0
(2,415)
64,124
3,468
264
Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
61,222
67,856
Total of liabilities, subordinated liabilities, trust preferred
securities, other liabilities and equity . . . . . . . . . . . . . . . . . . .
1,641,780
1,648,413
1
2
3
4
Includes (i) the issuance of AT1 Notes with a nominal amount of approximately € 3.5 billion in May 2014, and (ii) the increase
of the Company’s share capital by 59,931,506 shares, which was registered with the Commercial Register prior to the
Offering.
Total of (i) current liabilities and (ii) non-current liabilities.
Total of (i) deposits with maturities of up to one year, (ii) central bank funds purchased and securities sold under repurchase
agreements, as well as securities loaned, each with maturities of up to one year, (iii) short-term borrowings, (iv) financial
liabilities designated at fair value through profit or loss with maturities of up to one year, and (v) senior long-term debt with
maturities of up to one year.
The Group pledges assets primarily for repurchase, securities borrowing agreements, mainly financial assets at fair value
through profit or loss and loans. In addition, the Group pledges collateral against other borrowing arrangements and for
margining purpose on OTC derivative liabilities.
110
5
6
7
8
This consists of debt of a subsidiary of Deutsche Postbank AG which is guaranteed by the German government.
Total of (i) deposits with maturities of more than one year, (ii) central bank funds purchased and securities sold under
repurchase agreements, as well as securities loaned, each with maturities of more than one year, and (iii) financial liabilities
designated at fair value through profit or loss with maturities of more than one year, (iv) senior long-term debt with maturity
of more than one year.
Includes for the main part negative market values from derivative financial instruments of € 467 billion.
Reviewed.
Net Financial Liabilities
The following table provides, on the basis of the condensed consolidated interim financial statements of the
Company as of March 31, 2014, an overview of the net financial liabilities of the Deutsche Bank Group prior
to the Offering and after the assumed completion of the Offering. The information also takes into account
the issuance of AT1 Notes with a nominal amount of approximately € 3.5 billion in May 2014 and the
issuance of 59,931,506 new shares to Paramount Services Holdings Ltd., an investment vehicle ultimately
beneficially owned and controlled by His Excellency Sheikh Hamad Bin Jassim Bin Jabor Al-Thani through a
capital increase prior to the Offering. The information in the right-hand column is based on the assumption
that all New Shares offered at the Subscription Price of € 22.50 will be placed and that the Company will
receive net proceeds after tax from the Offering in the aggregate amount of € 6,634 million.
in € m.
Liquidity(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and due from banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trading securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current financial receivables(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current financial liabilities and debt(4) . . . . . . . . . . . . . . . . . . . . . . . .
Current financial liabilities(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Current portion of non-current financial debt(6) . . . . . . . . . . . . . . . . .
Other current financial debt(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net current financial indebtedness(8) . . . . . . . . . . . . . . . . . . . . . . . . .
March 31, 2014
March 31, 2014
(prior to the
(after completion
Offering)(1)
of the Offering)(1)
(unaudited)
(unaudited,
unless stated
otherwise)
201,946
208,579
28,272(14)
21,638(13)
180,307(15)
180,307
561,567
561,567
(567,139)
(567,139)
(478,159)
(478,159)
(33,805)
(33,805)
(55,175)
(55,175)
196,374
203,007
Non-current financial liabilities and debt(9) . . . . . . . . . . . . . . . . . . . .
Non-current financial liabilities(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-current financial debt(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(151,230)
(41,891)
(109,339)
(151,230)
(41,891)
(109,339)
Total net financial indebtedness(12) . . . . . . . . . . . . . . . . . . . . . . . . . .
45,144
51,778
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Includes (i) the issuance of AT1 Notes with a nominal amount of approximately € 3.5 billion in May 2014, and (ii) the increase
of the Company’s share capital by 59,931,506 shares, which was registered with the Commercial Register prior to the
Offering.
Total of (i) cash and due from banks, and (ii) trading securities.
Total of (i) interest-earning deposits with banks with maturities of up to one year, (ii) central bank funds sold and securities
purchased under resale agreements, as well as securities borrowed, each with maturities of up to one year, (iii) financial
assets at fair value with maturities of up to one year (excluding securities in the trading portfolio), (iv) claims arising from
loans with maturities of up to one year, (v) financial claims with maturities of up to one year (recognized as other assets), and
(vi) financial assets available for sale with maturities of up to one year.
Total of (i) current financial liabilities, (ii) current portion of non-current debt, and (iii) other current financial debt.
Total of (i) deposits with maturities of up to one year, (ii) central bank funds purchased and securities sold under repurchase
agreements, as well as securities loaned, each with maturities of up to one year, (iii) financial liabilities at fair value with
maturities of up to one year, and (iv) financial liabilities with maturities of up to one year (recognized as other liabilities).
Total of (i) long-term debt with maturities of up to one year, and (ii) hybrid capital instruments with maturities of up to one
year.
Other short-term borrowings.
Total of (i) liquidity, (ii) current financial receivables, and (iii) current financial liabilities and debt.
Total of (i) non-current financial liabilities, and (ii) non-current financial debt.
Total of (i) deposits with maturities of more than one year, (ii) central bank funds purchased and securities sold under
repurchase agreements, as well as securities loaned, each with maturities of more than one year, and (iii) financial liabilities
at fair value with maturities of more than one year.
Total of (i) long-term debt with maturities of more than one year, and (ii) hybrid capital instruments with maturities of more
than one year.
Total of (i) net current financial indebtedness, and (ii) non-current financial liabilities and debt. This position is positive, as the
liquidity and the current financial receivables exceed the current financial liabilities and debt and the non-current financial
liabilities and debt.
Net of the tax impact on the estimated costs of the issuance of AT1 Notes.
Net of the tax impact on the estimated costs of the Offering.
Reviewed.
111
Commitments and Contingent Liabilities
In the normal course of business, the Group regularly enters into irrevocable lending commitments as well
as lending-related contingent liabilities consisting of financial and performance guarantees, standby letters
of credit and indemnity agreements on behalf of its customers. Under these contracts the Group is required
to perform under an obligation agreement or to make payments to the beneficiary based on a third party’s
failure to meet its obligations. For these instruments it is not known to the Group in detail, if, when and to
what extent claims will be made. The Group considers these instruments in monitoring its credit exposure
and may agree upon collateral to mitigate inherent credit risk. If the credit risk monitoring provides sufficient
evidence of a loss from an expected claim, a provision is established and recorded on the balance sheet.
The following table shows the Group’s irrevocable lending commitments and lending-related contingent
liabilities without considering collateral or provisions on the basis of the condensed consolidated interim
financial statements of the Company as of March 31, 2014. It shows the maximum potential impact to the
Group in the event that all of these liabilities must be fulfilled. The table therefore does not show the
expected future cash flows from these obligations as many of them will expire without being drawn, arising
claims will be honored by the customers, or such claims may be recovered from proceeds from obtained
collateral.
in € m.
Irrevocable lending commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contingent liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 31, 2014
(reviewed)
128,221
62,191
190,412
Working Capital Statement
The Company believes that the Deutsche Bank Group has sufficient working capital to meet its payment
obligations for at least the next twelve months.
112
GENERAL INFORMATION ABOUT DEUTSCHE BANK
Corporate Name, Registered Office, Registration and Incorporation of the Company
The Company’s corporate name is Deutsche Bank Aktiengesellschaft. The Company is registered in the
Commercial Register of the District Court Frankfurt am Main under registration number HRB 30000.
Deutsche Bank AG is a credit institution and a stock corporation incorporated under the laws of Germany.
The Bank has its registered office in Frankfurt am Main, Germany. It maintains its head office at
Taunusanlage 12, 60325 Frankfurt am Main, Germany, (telephone: +49-69-910-00).
History and Development
Deutsche Bank originated from the reunification of Norddeutsche Bank Aktiengesellschaft, Hamburg,
Rheinisch-Westfälische Bank Aktiengesellschaft, Düsseldorf, and Süddeutsche Bank Aktiengesellschaft,
Munich; pursuant to the Law on the Regional Scope of Credit Institutions, these had been disincorporated
in 1952 from Deutsche Bank which was founded in 1870. The merger and the name were entered in the
Commercial Register of the Local Court Frankfurt am Main on May 2, 1957.
Fiscal Year
The fiscal year of the Bank is the calendar year.
Objectives of the Company
The Company is a credit institution (Kreditinstitut) within the meaning of Section 1(1) of the German
Banking Act (Kreditwesengesetz – KWG). The purpose of the Company as set forth in Section 2 of its
Articles of Association is the transaction of banking business of every kind, the provision of financial and
other services, and the promotion of the international economic relations. The Company may realize these
objectives itself or through subsidiaries and affiliated companies. To the extent permitted by law, the
Company is entitled to transact all business and to take all steps which appear likely to promote the object
of the Company, in particular to acquire and dispose of real estate, to establish branches at home and
abroad, to acquire, administer and dispose of participations in other enterprises, and to conclude enterprise
agreements.
Group Structure and Principal Investments
Deutsche Bank AG is the parent company of a group consisting of banks, capital market companies, fund
management companies, a property finance company, installment financing companies, research and
consultancy companies and other domestic and foreign companies.
The following table presents an overview of the significant subsidiaries, determined by quantitative and
qualitative criteria, which are held by the Company, both directly and indirectly. The Company owns 100 %
of the equity and voting rights in these subsidiaries, except for Deutsche Postbank AG, of which the
Company owns shares representing approximately 94.1 % of the equity and voting rights. These
subsidiaries are included in Deutsche Bank’s consolidated financial statements for the fiscal year ended
December 31, 2013 and the three-month period ended March 31, 2014. Their principal countries of
operation are the same as their countries of incorporation.
Name of Subsidiary
Taunus Corporation(1) . . . . . . . . . . . . . . . . . . . . .
Deutsche Bank Americas Holding
Corporation(2) . . . . . . . . . . . . . . . . . . . . . . .
German American Capital
Corporation(3) . . . . . . . . . . . . . . . . . . . . . .
DB U.S. Financial Markets Holding
Corporation(4) . . . . . . . . . . . . . . . . . . . . . . . . .
Deutsche Bank Securities Inc.(5) . . . . . . . . . .
DB Structured Products, Inc.(6) . . . . . . . . . . .
Deutsche Bank Trust Corporation(7) . . . . . . . . .
Deutsche Bank Trust Company
Americas(8) . . . . . . . . . . . . . . . . . . . . . . . . .
Deutsche Bank Luxembourg S.A.(9) . . . . . . . . .
Deutsche Bank Privat- und Geschäftskunden
Aktiengesellschaft(10) . . . . . . . . . . . . . . . . . . .
DB Finanz-Holding GmbH(11) . . . . . . . . . . . . . . .
Deutsche Postbank AG(12) . . . . . . . . . . . . . . .
1
Share of capital
held
Voting rights
Delaware, United States
100%
100%
100%
100%
100%
100%
New York, United States
100%
100%
100%
100%
100%
100%
100%
100%
New York, United States
Luxembourg
100%
100%
100%
100%
Frankfurt am Main, Germany
Frankfurt am Main, Germany
Bonn, Germany
100%
100%
94.1%
100%
100%
94.1%
Registered office
Taunus Corporation is one of two top-level holding companies for Deutsche Bank’s subsidiaries in the United States.
113
2
3
Deutsche Bank Americas Holding Corporation is a second tier holding company for subsidiaries in the United States.
German American Capital Corporation is engaged in purchasing and holding loans from financial institutions, trading and
securitization of mortgage whole loans and mortgage securities, and providing collateralized financing to counterparties.
4 DB U.S. Financial Markets Holding Corporation is a second tier holding company for subsidiaries in the United States.
5 Deutsche Bank Securities Inc. is a U.S. company registered as a broker dealer and investment advisor with the Securities
and Exchange Commission, a municipal advisor with the Municipal Securities Rulemaking Board, and a futures commission
merchant with the Commodities Future Trading Commission. It is a member of the New York Stock Exchange and various
other exchanges.
6 DB Structured Products, Inc. is a US subsidiary that has ceased engaging in new business and is in the process of voluntarily
surrendering the various approvals and licenses it holds in respect of mortgage-related activities.
7 Deutsche Bank Trust Corporation is a bank holding company under Federal Reserve Board regulations.
8 Deutsche Bank Trust Company Americas is a New York State-chartered bank and member of the Federal Reserve System. It
originates loans and other forms of credit, accepts deposits, arranges financings and provides numerous other commercial
banking and financial services.
9 The primary business of this company comprises Treasury and Markets activities, especially as a major supplier of Euro
liquidity for Deutsche Bank Group. Further business activities are the international loan business, where the bank acts as
lending office for continental Europe and as risk hub for the credit portfolio strategies group, and private banking. The
company serves private individuals, affluent clients and small business clients with banking products.
10 The company serves private individuals, affluent clients and small business clients with banking products.
11 The company holds the majority stake in Deutsche Postbank AG.
12 The business activities of this company comprise retail banking, business with corporate customers, money and capital
markets activities as well as home savings loans.
For further information on the subsidiaries of Deutsche Bank AG, see Note 45 to the consolidated financial
statements of Deutsche Bank for the fiscal year 2013 which are contained in the section “Financial
Statements” of this Prospectus.
Publications
In accordance with its Articles of Association, all notifications shall be published by the Company in the
German Federal Gazette (Bundesanzeiger). Notifications to the holders of the Company’s admitted
securities may also be made by way of data teletransmission.
Long-term Credit Ratings
Deutsche Bank AG is rated by Moody’s Investors Service Inc. (“Moody’s”), Standard & Poor’s Credit
Market Services Europe Limited (“Standard & Poor’s”) and Fitch Deutschland GmbH (“Fitch”).
Standard & Poor’s and Fitch are established in the European Union and have been registered or certified in
accordance with Regulation (EC) No 1060/2009 of the European Parliament and of the Council of
September 16, 2009, as amended, on credit rating agencies (“CRA Regulation”). With respect to Moody’s,
the credit ratings are endorsed by Moody’s office in the UK (Moody’s Investors Services Ltd.) in accordance
with Article 4(3) of the CRA Regulation.
At the date of this Prospectus, Deutsche Bank AG’s long-term credit ratings are as follows:
Moody’s(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Standard & Poor’s(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Fitch(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
2
3
A2
A
A+
Moody’s defines the A rating as upper-medium grade and to be subject to low credit risk. The numerical modifier 2 indicates
that Moody’s ranks the obligation in a mid-range ranking.
Standard & Poor’s defines the A rating as somewhat more susceptible to the adverse effects of changes in circumstances
and economic conditions than obligations in higher-rated categories. However, the obligor’s capacity to meet its financial
commitment on the obligation is still strong.
Fitch defines the A rating as denoting expectations of low default risk. The capacity for payment of financial commitments is
considered strong. According to Fitch, A-ratings indicate that this capacity may, nevertheless, be more vulnerable to adverse
business or economic conditions than is the case for higher ratings. The modifier “+” or “-” is appended to a rating to
denote its relative status within the major rating categories.
Each rating reflects the view of the rating agency only at the time it gave Deutsche Bank the rating. The
rating agencies can change their ratings at any time if they believe that circumstances so warrant. Potential
investors in the Company’s shares should not view these long-term credit ratings as recommendations to
buy, hold or sell securities of Deutsche Bank.
114
DIVIDEND POLICY AND EARNINGS PER SHARE
Dividend Policy
Deutsche Bank AG paid dividends in previous years and intends to make payments of dividends to its
shareholders in the future. On May 18, 2014, the Company announced that it aspires to return surplus
capital to shareholders – including in the form of competitive dividend payout ratios – in the long term.
However, the Company cannot assure investors that it will pay dividends at any level, or at all, in any future
period. If the Company is not profitable, it may not pay dividends at all. If the Bank fails to meet the
regulatory capital adequacy requirements or liquidity requirements under the German Banking Act, the
BaFin may suspend or limit the payment of dividends.
Under German law, the dividends paid by Deutsche Bank AG are based on the non-consolidated results of
Deutsche Bank AG as prepared in accordance with German accounting rules. In connection with the
determination of the balance sheet profits available for distribution, the annual net income/loss is adjusted by
accumulated income/loss in regard to the preceding year and allocations to and withdrawals from reserves.
Certain reserves are required by law and must be deducted when calculating the amount of balance sheet
profits available for distribution. The remaining amount is then allocated to other revenue reserves (or
retained earnings) or to balance sheet profits (or distributable profits). Up to one-half of this remainder may
be allocated to other revenue reserves, and at least one-half must be allocated to balance sheet profits. The
full amount of the balance sheet profits of Deutsche Bank AG is distributed if the Company’s annual General
Meeting so resolves. The annual General Meeting may resolve a non-cash distribution instead of or in
addition to a cash dividend. Insofar as the Bank has issued participatory certificates (Genussscheine) and the
respective conditions of participatory certificates accord the holders of the participatory certificates a claim to
distribution from the distributable profits, the right of the shareholders to this portion of the distributable
profits is reduced. If the Bank fails to meet the regulatory capital adequacy requirements or liquidity
requirements under the German Banking Act, the BaFin may suspend or limit the payment of dividends. The
non-consolidated financial statements of the Company as of December 31, 2013 are contained in the section
“Financial Statements” of this Prospectus. Contrary to the consolidated financial statements which were
prepared in accordance with IFRS, these non-consolidated financial statements have been prepared in
accordance with the German Commercial Code (HGB). There are differences between HGB and IFRS
accounting standards. Neither German law nor the Company’s Articles of Association provide for a special
procedure for the exercise of dividend rights by shareholders not resident in Germany.
The Bank declares dividends at the annual General Meeting and pays them once a year. Dividends approved
at a General Meeting are payable on the first stock exchange trading day after that meeting, unless
otherwise decided at that meeting. Under German law, dividend claims are generally subject to a three-year
statute of limitations. In the event of such a limitation, the dividend claim becomes unenforceable and the
dividend remains with the Company. In accordance with the German Stock Corporation Act (Aktiengesetz AktG), the record date for determining which holders of the common shares are entitled to the payment of
dividends, if any, or other distributions whether cash, stock or property, is the date of the General Meeting at
which such dividends or other distributions are declared. If the Bank issues a new class of shares, its Articles
of Association permit it to declare a different dividend entitlement for the new class of shares.
For information on German tax aspects with respect to dividend payments, see “Taxation in Germany—
Taxation of Shareholders—Taxation of Dividends”.
Earnings per Share
The following table shows the Group’s earnings per common share on a consolidated basis (IFRS) for the three
months ended March 31, 2014 and 2013 (reviewed) and the fiscal years ended December 31, 2013, 2012 and
2011 (audited) as well as the annual dividends per share paid for the fiscal years 2013, 2012 and 2011:
in €
Dividends per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Basic earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted earnings per share(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Three months ended
March 31,
2014
2013
(reviewed)
–
–
1.06
1.76
1.03
1.71
Year ended
December 31,
2013 2012 2011
(audited)
0.75 0.75 0.75
0.67 0.28 4.45
0.65 0.27 4.30
Diluted earnings per share assumes the conversion into common shares of outstanding securities or other contracts to issue
common stock, such as share options, convertible debt, unvested deferred share awards and forward contracts. For further
detail see Note 11 to the consolidated financial statements of Deutsche Bank for the fiscal year 2013, contained in the
section “Financial Statements” of this Prospectus.
Dividends distributed in the past are not a suitable basis for drawing any conclusions in regard to future
dividend payments.
115
BUSINESS
Overview
Headquartered in Frankfurt am Main, Germany, Deutsche Bank believes itself to be the largest bank in
Germany and one of the largest financial institutions in Europe and the world, as measured by total assets
of € 1,636,574 million as of March 31, 2014. As of that date, Deutsche Bank employed 97,184 people on a
full-time equivalent basis and operated in 71 countries out of 2,853 branches worldwide, of which 66 %
were in Germany. Deutsche Bank offers a wide variety of investment, financial and related products and
services to private individuals, corporate entities and institutional clients around the world.
Following a comprehensive strategic review, Deutsche Bank realigned its organizational structure in the
fourth quarter 2012. Deutsche Bank reaffirmed its commitment to the universal banking model and to its
four existing corporate divisions. Deutsche Bank strengthened this emphasis with an integrated Deutsche
Asset & Wealth Management corporate division that includes former Corporate Banking & Securities
businesses such as exchange-traded funds (ETFs). Furthermore, Deutsche Bank created a Non-Core
Operations Unit. This unit includes the former Group Division Corporate Investments (CI) as well as noncore operations which were re-assigned from other corporate divisions.
Deutsche Bank is currently organized into the following five corporate divisions:
The five corporate divisions are supported by infrastructure functions. In addition, Deutsche Bank has a
regional management function that covers regional responsibilities worldwide.
Deutsche Bank has operations or dealings with existing or potential customers in most countries in the
world. These operations and dealings include:
• subsidiaries and branches in many countries;
• representative offices in many other countries; and
• one or more representatives assigned to serve customers in a large number of additional countries.
116
The following table presents total net revenues (before provisions for credit losses) by geographic area for
the years ended December 31, 2013, 2012 and 2011, respectively. The information presented for CB&S,
GTB, DeAWM, PBC and NCOU has been classified based primarily on the location of the Group’s office in
which the revenues are recorded. The information for C&A is presented on a global level only, as
management responsibility for C&A is held centrally.
(audited)
in € m.
Germany:
CB&S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GTB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DeAWM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PBC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NCOU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Germany . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
United Kingdom:
CB&S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GTB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DeAWM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PBC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NCOU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rest of Europe, Middle East and Africa:
CB&S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GTB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DeAWM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PBC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NCOU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Rest of Europe, Middle East and Africa . . . . . . . . . . . . . . . . . . . . . . . . . .
Americas (primarily United States):
CB&S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GTB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DeAWM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PBC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NCOU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Americas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Asia/Pacific:
CB&S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GTB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DeAWM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PBC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NCOU . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Asia/Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidation & Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated net revenues(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Year ended december 31,
2013
2012
2011
1,008
1,348
1,193
7,723
365
11,637
1,370
1,364
1,157
7,559
1,016
12,466
1,248
1,317
1,181
8,519
520
12,785
4,085
291
983
0
(109)
5,250
4,652
318
398
0
(533)
4,836
4,367
264
1,246
0
(318)
5,559
884
983
894
1,812
(31)
4,543
1,095
1,165
823
1,949
110
5,142
940
1,100
824
1,851
194
4,909
4,867
833
1,173
(21)
708
7,561
5,656
771
1,667
0
484
8,578
4,694
642
622
0
444
6,402
2,778
614
491
36
(65)
3,854
(929)
31,915
2,675
581
424
32
(23)
3,689
(975)
33,736
2,650
493
405
27
37
3,611
(39)
33,228
Consolidated net revenues comprise interest and similar income, interest expenses and total noninterest income (including
net commission and fee income). Revenues are attributed to countries based on the location in which the Group’s booking
office is located. The location of a transaction on the Group’s books is sometimes different from the location of the
headquarters or other offices of a customer and different from the location of the Group’s personnel who entered into or
facilitated the transaction. Where the Group records a transaction involving its staff and customers and other third parties in
different locations frequently depends on other considerations, such as the nature of the transaction, regulatory
considerations and transaction processing considerations.
CB&S consists of the Markets and the Corporate Finance business divisions. The Markets business division
combines sales, trading and structuring of a wide range of financial market products, including bonds,
equities and equity-linked products, exchange-traded and over-the-counter derivatives, foreign exchange,
money market instruments, securitized instruments and commodities. Corporate Finance is responsible for
mergers and acquisitions, as well as debt and equity advisory and origination. Regional and industry-focused
teams ensure the delivery of the entire range of financial products and services.
117
GTB provides domestic and cross-border payments, risk mitigation and international trade finance for
corporate clients and financial institutions across the globe. GTB also offers trust, agency, depositary,
custody and related services.
DeAWM helps individuals and institutions worldwide to preserve and increase their wealth. DeAWM offers
traditional and alternative investments across all major asset classes, as well as tailored wealth
management solutions and private banking services to high net worth clients and family offices. DeAWM
clients can draw on Deutsche Bank’s entire range of wealth and asset management capabilities as well as a
comprehensive selection of first-class products and solutions, also by third-party providers.
PBC provides banking and other financial services to private customers, self-employed clients as well as
small and medium-sized businesses in Germany and internationally. PBC’s product range includes payment
and current account services, investment management and retirement planning, securities as well as
deposits and loans. PBC is a leading retail bank in Deutsche Bank’s home market, Germany, with a
franchise in Italy, Spain, Belgium, Portugal, Poland and India. In China, PBC cooperates closely with Hua Xia
Bank in which it holds a 19.99 % stake and is its second largest shareholder.
The NCOU was established in late 2012 and is responsible for selling capital-intensive assets that are not
core to the bank’s new strategy, thereby reducing risk and capital demand. This also allows management to
focus on strategic core operations and, at the same time, increases the transparency of external reporting.
Management Structure
Deutsche Bank operates the five corporate divisions and the infrastructure functions under the umbrella of
a “virtual holding company”. Deutsche Bank uses this term to mean that, while Deutsche Bank subjects
the corporate divisions to the overall supervision of its Management Board, which is supported by
infrastructure functions, Deutsche Bank does not have a separate legal entity holding these five corporate
divisions but Deutsche Bank nevertheless allocates substantial managerial autonomy to them. To support
this structure, key governance bodies function as follows:
The Management Board has the overall responsibility for the management of Deutsche Bank, as provided
by the German Stock Corporation Act. Its members are appointed and removed by the Supervisory Board,
which is a separate corporate body. Deutsche Bank’s Management Board focuses on strategic
management, corporate governance, resource allocation, risk management and control, assisted by
functional committees.
The Group Executive Committee was established in 2002. It comprises the members of the Management
Board and senior representatives from Deutsche Bank’s regions, corporate divisions and certain
infrastructure functions appointed by the Management Board. The Group Executive Committee is a body
that is not required by the Stock Corporation Act. It serves as a tool to coordinate Deutsche Bank’s
businesses and regions, discusses Group strategy and prepares recommendations for Management Board
decisions. It has no decision making authority.
Within each corporate division and region, coordination and management functions are handled by
operating committees and executive committees, which helps ensure that the implementation of the
strategy of individual businesses and the plans for the development of infrastructure areas are integrated
with global business objectives.
Business Strategy
Strategy 2015+, which Deutsche Bank launched in September 2012, sets out how Deutsche Bank plans to
address near-term challenges in a changed business environment. It also positions Deutsche Bank to seize
opportunities presented by longer-term global trends and achieve its vision to become the leading clientcentric global universal bank.
With Strategy 2015+, Deutsche Bank is reinforcing its commitment to the universal banking model, to its
home market, Germany, and to its global presence. The strategy emphasizes the need to become more
client-centric, enhance efficiency and business performance, strengthen its capital position and change its
culture. Five levers are key to Deutsche Bank’s delivery on Strategy 2015+:
• Clients. Deutsche Bank serves a clearly defined portfolio of clients and regions based on its ability to
generate value for them. Deutsche Bank has placed a strategic emphasis on growth in its home market,
118
Germany, in Asia Pacific and in the Americas. Since the launch of Strategy 2015+, Deutsche Bank has
aligned its organization more closely to its clients. For instance, Deutsche Bank created a dedicated
platform for Germany’s “Mittelstand”, intensified local coverage across regions and strengthened crossdivisional collaboration.
• Competencies. Deutsche Bank’s strategy is also based on the strengths of its businesses. Deutsche
Bank believes that its four core corporate divisions – Corporate Banking & Securities, Global Transaction
Banking, Deutsche Asset & Wealth Management and Private & Business Clients – are well positioned to
balance its earnings mix, as planned, and to satisfy the increasingly complex and global client needs.
• Capital. Deutsche Bank is committed to further strengthening capital and leverage ratios. To achieve
this, Deutsche Bank is implementing a series of measures to reinforce its capital position and reduce its
risk-weighted assets and leverage exposure. Deutsche Bank aims to achieve a CRR/CRD 4 fully loaded
Common Equity Tier 1 (CET 1) ratio of more than 10 % taking into account the net proceeds of this
Offering and the acquisition of 59,931,506 new shares in the Company by Paramount Services Holdings
Ltd., an investment vehicle ultimately beneficially owned and controlled by His Excellency Sheikh
Hamad Bin Jassim Bin Jabor Al-Thani. Deutsche Bank’s CRR/CRD 4 fully loaded CET 1 ratio improved
from below 6 % in June 2012 (estimated on a pro forma basis) to 9.5 % at the end of March 2014.
During the same period, Deutsche Bank also significantly reduced its balance sheet. Its Non-Core
Operations Unit, which manages its reduction of assets from non-core business activities, made a
significant contribution to this de-risking.
• Costs. Deutsche Bank aims to secure its long-term competitiveness by building a world-class platform
through its Operational Excellence (OpEx) Program: increasing quality, strengthening flexibility,
reinforcing controls and embedding a culture of cost efficiency. Through investments of approximately
€ 4 billion, Deutsche Bank intends to achieve annual cost savings of € 4.5 billion by the end of 2015. By
the end of 2013, Deutsche Bank had already delivered cumulative savings of € 2.1 billion. Deutsche
Bank believes that it is saving money by becoming more efficient, buying smarter, upgrading its
technology, streamlining its businesses and increasing the resiliency of its platform.
• Culture. Deutsche Bank recognizes the need for cultural change in the banking sector and aspires to be
at the forefront of change. Deutsche Bank is committed to a culture that aligns risks and rewards,
attracts and develops talented individuals, fosters teamwork and partnership, and is sensitive to the
society in which Deutsche Bank operates. In 2013, Deutsche Bank laid the foundations for cultural
change. Deutsche Bank defined new values and beliefs, strengthened its governance and control
mechanisms, reformed its compensation model and established a program for sustainable change.
In summary, Strategy 2015+ seeks to strengthen Deutsche Bank’s global platform and home market
position, further leverage the integrated performance of its universal banking model, build capital strength,
achieve operational excellence and cost efficiency, and place Deutsche Bank at the forefront of cultural
change in the banking industry.
On May 18, 2014, Deutsche Bank reaffirmed its commitment to its Strategy 2015+ and provided updated
financial targets and further details of its growth strategy. Since Deutsche Bank announced its Strategy
2015+ targets in 2012, macroeconomic and market conditions, on the one hand, and the regulatory
environment, combined with the costs of litigation and investigations, on the other, have remained much
more challenging than originally anticipated in 2012. In particular, protracted low interest rates, increased
regulatory, investigation and litigation costs, and margin pressures have made it more challenging to meet
some of the Strategy 2015+ targets in the originally planned timelines.
On May 18, 2014, Deutsche Bank also announced a series of measures to build Deutsche Bank’s capital
strength, enhance its competitiveness and invest in its client franchises. To achieve this, Deutsche Bank is
increasing its capital to improve its capital ratios and also to provide a buffer against future regulatory
uncertainty and challenges not currently foreseen by Deutsche Bank. The net proceeds of the Offering and
the Anchor Investment are intended to be in addition to the € 5 billion of Additional Tier 1 capital Deutsche
Bank intends to issue by 2015. In this context, Deutsche Bank has reaffirmed its commitment to its
Strategy 2015+ and has restated its aspiration to be the leading client-centric global universal bank.
Deutsche Bank’s Updated Aspirations
Due to the challenging environment, Deutsche Bank has updated its aspirations for the Group. Deutsche
Bank’s updated aspirations reflect its strategy with respect to its financial performance, but are subject to
the assumptions and uncertainties described below. As such, they must be regarded only as Deutsche
Bank’s aspirations with regard to its financial performance by the dates indicated and not as forecasts,
expectations, projections or assurances that the respective aspirations will be achieved by those dates or
any other time. They do not and are not intended to indicate any likelihood as to whether Deutsche Bank
will ultimately be able to achieve them.
119
Deutsche Bank’s updated aspirations are detailed in the table below. The aspirations reflect Deutsche
Bank’s completion of the Anchor Investment, the Offering and Deutsche Bank’s investment of the net
proceeds thereof and redeployment of internal resources consistent with the strategic initiatives it
announced on May 18, 2014. Some of the aspirations are expressed in the form of non-GAAP financial
measures as Deutsche Bank believes that adjustments to the related IFRS or IFRS-derived figures are
appropriate for investors better to understand the aspirations in the context of certain factors that
management believes do not reflect the underlying performance of Deutsche Bank’s business.
Deutsche Bank’s updated Group aspirations
Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Leverage ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost-income ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Post-tax return on equity . . . . . . . . . . . . . . . . . . . . . . . .
1
2
3
4
5
6
CRR/CRD 4, fully loaded, assuming no material regulatory changes to formula and calculation.
Gross savings, resulting from the implementation of the OpEx program.
Adjusted for litigation, costs to achieve, impairment of goodwill and intangible assets, policyholder benefits and claims, other
severance costs and other divisional specific cost one-offs; divided by reported revenues.
Based on average active equity on a CRR/CRD 4 fully loaded basis and assuming a corporate tax rate of 30 - 35%.
Adjusted for litigation, costs to achieve, impairment of goodwill and intangible assets, other severance costs and excluding
Credit Valuation Adjustments (CVA), Debt Valuation Adjustments (DVA) and Funding Valuation Adjustments (FVA).
Assumes that Deutsche Bank’s costs for litigation and investigations will be significantly lower by 2016 than they were in
2013.
Deutsche Bank’s updated aspirations in 2015 for
its core businesses
CB&S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PBC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GTB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DeAWM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
2
a CET 1 Ratio of more than 10 %(1)
approximately 3.5 % by end of 2015(1)
€ 4.5 billion p.a. by end of 2015(2)
approximately 65 % adjusted in 2015(3)
approximately 65 % reported in 2016(6)
approximately 12 % adjusted in 2015(4), (5)
approximately 12 % reported in 2016(4), (6)
adjusted post-tax return on equity of 13 % to
15 %(1), (2)
reported IBIT of € 2.5 to € 3.0 billion
reported IBIT of € 1.6 to € 1.8 billion
reported IBIT of approximately € 1.7 billion
Based on average active equity on a CRR/CRD 4 fully loaded basis and assuming a corporate tax rate of 30 - 35 %.
Adjusted for litigation, costs to achieve, impairment of goodwill and intangible assets, other severance costs and excluding
Credit Valuation Adjustments (CVA), Debt Valuation Adjustments (DVA) and Funding Valuation Adjustments (FVA).
The CRR/CRD 4 fully loaded leverage ratio, the adjusted cost-income ratio, and the adjusted and unadjusted
post-tax return on equity presented in the tables above are non-GAAP financial measures. For descriptions
of these non-GAAP financial measures and the adjustments made to the most directly comparable financial
measures under IFRS or CRR/CRD 4, as the case may be, please see the section “General Information—
Non-GAAP Financial Measures” of this Prospectus.
Assumptions and Risks Underlying Deutsche Bank’s Aspirations
The updated aspirations Deutsche Bank has announced, as described above, are based on a number of key
assumptions. Underlying its aspirations and its strategy generally are assumptions that the new regulations
to which Deutsche Bank is subject will be implemented in line with Deutsche Bank’s expectations, that
global gross domestic product will grow in the range of 2 % to 4 % per annum over the relevant period,
that there will be no major increases in interest rates before 2016 in the markets in which Deutsche Bank
operates and that central bank intervention in the U.S. financial markets will recede.
Deutsche Bank’s aspirations with respect to its CET 1 capital ratio also take into account the net proceeds
of the Anchor Investment and the Offering, its current expectations regarding the impact of regulatory
requirements, and efforts by management to reduce Deutsche Bank’s balance sheet total and accretions to
capital including retained earnings, if any. Based on its current calculation under the regulatory requirements
as it currently understands them, Deutsche Bank expects that its minimum CET 1 ratio requirement in 2019
will be 9 %. This assumes a mandatory conservation buffer of 2.5 % under CRR/CRD 4 and a capital buffer
for globally systemically important banks (“G-SIBs”) of 2 % based on Deutsche Bank’s current status.
However, depending on regulators’ future assessment of Deutsche Bank, the G-SIB buffer could be
increased to as much as 3.5 %, and if EU member states deem it necessary to address macroeconomic
and systemic risks, they may instead impose a prudential buffer of up to 5 %. In addition, Deutsche Bank’s
assumptions for its capital requirements in 2019 do not take into account the additional counter-cyclical
buffer that regulators could impose of up to an additional 2.5 %. Deutsche Bank’s aspirations also assume
that the EBA’s requirements related to prudent valuation adjustments of fair valued positions will have a
cumulative negative impact of € 1.5 billion to € 2 billion on Deutsche Bank’s CET 1 capital levels. In addition,
120
Deutsche Bank has communicated its ambition to increase its RWAs to a range of € 380 billion to € 395
billion by the end of 2014, by balancing continued de-risking activities, both through dispositions in the
NCOU unit as well as RWA reductions in the Core Bank, with Deutsche Bank’s planned growth. This
revised ambition also takes into account the increases in RWA that Deutsche Bank currently expects to
result from changes in the regulatory calculation of RWA.
Deutsche Bank’s aspirations with respect to its leverage ratio also take into account the net proceeds from
the Offering, its planned Additional Tier 1 capital issuance program, efforts by management to reduce
Deutsche Bank’s balance sheet total and accretions to capital including retained earnings, if any.
In addition, Deutsche Bank’s aspirations are subject to market and economic uncertainties, including with
respect to the protracted low interest rate environment that may, in future periods, impact Deutsche Bank’s
businesses more than it currently anticipates. The extent to which Deutsche Bank is able to achieve its
aspirations may also be impacted by regulatory changes that may affect Deutsche Bank’s businesses
differently than it currently expects. As a result, Deutsche Bank’s costs could be higher than anticipated or,
depending on the development of the regulatory environment, regulators could demand changes to
Deutsche Bank’s business model or organization that could reduce its profitability. Additionally, Deutsche
Bank’s results of operation and financial condition have been negatively affected in recent years by a large
number of claims, disputes, legal proceedings and government investigations. If such matters continue to
occur at the same rate and magnitude as in recent years, Deutsche Bank may not be able to achieve all of
its Strategy 2015+ aspirations. See the section “Risk Factors—Risks Related to the Business of Deutsche
Bank—Since Deutsche Bank published its Strategy 2015+ targets in 2012, macroeconomic and market
conditions as well as the regulatory environment have been much more challenging than originally
anticipated, and as a result, Deutsche Bank has updated its aspirations to reflect these challenging
conditions. If Deutsche Bank is unable to implement its updated strategy successfully, it may be unable to
achieve its financial objectives, or incur losses or low profitability or erosions of its capital base, and its
share price may be materially and adversely affected” of this Prospectus
Deutsche Bank’s Update on Strategy 2015+: Key Strategic Measures
In addition to the updated financial aspirations, Deutsche Bank also announced on May 18, 2014 that it
intends, as part of its strategy regarding CB&S, to reshape its CB&S franchise to enable CB&S to achieve
returns above its cost of capital while carefully balancing Deutsche Bank’s market share in its various
businesses with their profitability. Deutsche Bank has communicated target RWAs at a level of up to
€ 200 billion in CB&S in 2016, with both changes in regulatory calculations of RWAs and growth playing
roles in the increased level of RWAs.
In light of its updated aspirations, Deutsche Bank plans to launch focused investments in order to take
advantage of client opportunities which it perceives to be available across its businesses:
• In order to pursue a focused growth strategy to invest in the businesses in the United States it
perceives to be the most profitable, Deutsche Bank intends to allocate resources (such as through hiring
of senior professionals) to its financing business (leveraged debt capital markets, commercial real estate
and emerging market debt), its client solutions business (credit solutions, prime finance and structured
equity solutions) and corporate coverage across GTB and CB&S.
• Deutsche Bank also plans to transform its retail model in Europe by launching a digital investment
program which will aim to provide new, alternative channels to enhance client access to Deutsche
Bank’s services and to digitally integrate front-to-back processes, with the aim to improve costefficiency. In this context, Deutsche Bank plans to invest approximately € 200 million over the next three
years to improve digital capabilities in PBC in Germany and Europe.
• Building on previous investments to align cross-divisional cooperation, particularly between CB&S and
GTB, on multinational corporate relationships, Deutsche Bank also plans to invest to increase its
coverage of multinational corporations through focusing on investing and increasing staffing in the Asia
Pacific region and the United States as well as expanding its strong German franchise across central
Europe, the Middle East, Africa and selected European geographies. To support these activities,
Deutsche Bank intends to hire up to 100 advisory and coverage professionals to support multi-national
corporate clients.
• Deutsche Bank also intends to make focused investments in its wealth management business aimed at
taking advantage of anticipated opportunities with respect to high net worth individuals. In this regard,
Deutsche Bank plans to increase the number of its managers in Asia, the Middle East, the United States
and the United Kingdom covering high net worth individuals and to invest in integrated platforms and
technology innovation (such as mobile platforms). In connection with these initiatives, Deutsche Bank
intends to increase the number of relationship managers in key wealth management markets by 15 %
over the next three years.
121
Deutsche Bank aspires to achieve its Strategy 2015+ target of € 4.5 billion in cumulative savings under its
Operational Excellence (OpEx) program and to achieve a reported cost-income ratio of 65 % by 2016 even
as it expects the costs to it of regulatory compliance to increase by € 1 billion to € 2 billion over this period.
Deutsche Bank’s aspirations on cost reduction and its cost-income ratio are based on the assumption that
substantial outflows arising from litigation and investigations by 2016 will not occur at the levels at which
they have occurred in 2013 (and at which they may continue to occur in 2014 and 2015), and that costs to
achieve the OpEx Program will total approximately € 4 billion. In order to achieve this ambition, Deutsche
Bank intends to balance management efforts to reduce costs under the OpEx program with the additional
costs that Deutsche Bank expects to result from business growth and regulatory and capital costs. These
costs include establishing new regulatory control capabilities, integrating platforms and enhancing end-toend processes, strengthening its regulatory framework and changing its compensation in anticipation of
CRR/CRD 4.
The Competitive Environment
Competitor Landscape
Although the intervention by the European Central Bank (generally referred to as the ECB) in financial
markets appears to have forestalled further iterations of the euro crisis and somewhat improved the
macroeconomic and market environment in the eurozone in 2013, economic growth in Europe remains
weak, and many European economies continue to face structural challenges as unemployment and
structural debt levels remain high. In the United States, uncertainties concerning the political stalemate over
fiscal policy and potential changes to the U.S. Federal Reserve’s program to make large purchases of longterm financial assets to stimulate the U.S. economy (referred to as “quantitative easing”) have repeatedly
re-emerged to endanger a still tepid and fragile economic recovery. Emerging markets experienced volatility
in 2013 amid concerns that the level of foreign investment inflows would decline substantially as the
liquidity-enhancing measures in the United States and Europe are tapered down. Against this background
and these uncertainties, Deutsche Bank has observed subdued client activity in a number of its businesses,
with its credit flow businesses affected in particular by the potential tapering of quantitative easing, even as
the ultra-low interest rate environment has also put pressure on its margins in several traditional banking
sectors. These challenges have been exacerbated as Deutsche Bank continues to face headwinds from the
continuing intensification of the regulatory environment as well as a continued high level of litigation and
enforcement matters that have given rise to reputational issues and have put further pressure on
profitability and returns.
In this environment, the banking industry (including Deutsche Bank, in all of its businesses) is experiencing
intense competition, and the sector is gradually becoming more concentrated as a result. Strengthening
capital levels, improving efficiency and resolving legacy issues are at the top of the strategic agendas of
most of Deutsche Bank’s competitors. This has led many of them to recalibrate their business models to be
able to generate attractive returns. Several banks have announced measures to retrench their businesses,
especially in capital markets, which has been highly affected by regulatory change.
Deutsche Bank believes that global trends such as the growing economic importance of emerging markets,
aging populations in most developed economies and technological advancements, will provide
opportunities for future growth. Banks, including Deutsche Bank, are considering these as part of their
business strategies and growth plans.
Deutsche Bank’s competitors include other universal banks, commercial banks, savings banks, public
sector banks, brokers and dealers, investment banking firms, asset management firms, private banks,
investment advisors, payments services providers, and insurance companies. As some technology firms
are showing increasing interest in banking services, they are a potential new group of competitors in the
future. Deutsche Bank competes with some of its competitors globally and with some others on a regional,
product, or niche basis. Deutsche Bank competes on the basis of a number of factors, including the quality
of client relationships, transaction execution, its products and services, innovation, reputation and price.
In Deutsche Bank’s home market, Germany, the retail banking market remains fragmented, and its
competitive environment is influenced by the three pillar system of private banks, public banks and
cooperative banks. Following some consolidation activity, particularly among public regional commercial
banks (“Landesbanken”) and private banks, competitive intensity has increased in past years. Deutsche
Bank’s takeover of Deutsche Postbank AG has also affected the domestic competitive landscape and
further increased the concentration of the banking sector.
Regulatory Reform
Implementation of global regulatory reforms in the wake of the financial crisis is ongoing. Although several
major jurisdictions have made significant progress in finalizing new legislation and new rules to implement
122
globally agreed reforms, in many instances detailed rules have yet to be finalized, the pipeline of proposals
yet to be agreed is still significant and new proposals are emerging with potentially significant impact.
Final legal frameworks
Recently, several major G20 commitments have been finalized and implemented in law in major
jurisdictions while other initiatives are sufficiently advanced to allow them to be factored into Deutsche
Bank’s business strategy and operations. The cumulative impact of these reforms will be highly dependent
on detailed rules and on the interaction between regimes in different jurisdictions – e.g. the extent to which
they impose duplicative or conflicting requirements. Areas with potential for significant impacts and
implications for competitiveness include:
• The Basel 3 framework on capital which has now been implemented in the EU by the CRR/CRD 4
legislative package (“CRR/CRD 4”), consisting of the Regulation (EU) No. 575/2013 on prudential
requirements for credit institutions and investment firms (Capital Requirements Regulation, “CRR”) and
the Directive 2013/36/EU on access to the activity of credit institutions and the prudential supervision of
credit institutions and investment firms (Capital Requirements Directive 4, “CRD 4”). Most of the
provisions have become effective starting on January 1, 2014. CRR/CRD 4 will affect all parts of
Deutsche Bank’s business, including reporting and disclosure; the Basel 3 framework has also been
implemented in the U.S. and will apply to certain aspects of Deutsche Bank’s U.S. operations beginning
on January 1, 2015 and all of its U.S. operations as of July 1, 2016;
• Under CRD 4, EU banks including Deutsche Bank are subject to a new set of rules affecting
remuneration for staff whose professional activities have a material impact on an institution’s risk profile,
including technical standards and guidelines promulgated in March 2014 detailing the operation of these
rules;
• Structural reforms requiring the separation of certain activities such as proprietary trading from deposit
taking may also have implications for competitiveness. Deutsche Bank will be impacted by Section 619
of the U.S. Dodd-Frank Wall Street Reform and Consumer Protection Act – referred to as the “Volcker
rule” – which must be implemented by July 2015, and the German Act on the Separation of Risks and
Recovery and Resolution Planning for Credit Institutions and Banking Groups, which requires banks
exceeding certain thresholds (including Deutsche Bank) to separate proprietary trading and certain other
activities from the deposit-taking business starting on July 1, 2015, subject to a twelve months’
transition period;
• Introduction of capital, liquidity and other prudential requirements for financial institutions considered
systematically important at a national level, such as the U.S. Federal Reserve Board final rules regarding
U.S. capital, stress testing, liquidity and other enhanced prudential requirements for the U.S. operations
of foreign banking organizations;
• Requirements for over-the-counter and standardized derivatives to be centrally cleared, reported to trade
repositories and traded on formal platforms, via the Dodd-Frank Act in the U.S. and – for clearing and
reporting – in the EU via the Regulation on OTC Derivatives, Central Counterparties and Trade
Repositories (EMIR). Deutsche Bank is advanced in planning, but impacts will depend on final
implementing rules, interaction between these and other jurisdictions and outcomes of cross-border
discussions on OTC derivatives;
• Implementation of Basel Committee on Banking Supervision (BCBS) and International Organization of
Securities Commissions (IOSCO) final minimum standards for margin requirements for non-centrally
cleared derivatives, for which enabling legislation exists in the EU (EMIR) and U.S. (Dodd-Frank Act) but
where much of the impact depends on how these requirements are continuing to be implemented in
detailed rule-making;
• The introduction of new resolution regimes for regulators to restructure failing financial institutions and
write-down liabilities held by shareholders and creditors, via the Dodd-Frank Act in the U.S. and the
Recovery and Resolution Directive in the EU. Deutsche Bank’s recovery and resolution planning is welladvanced and overseen by key regulators, and Deutsche Bank has a large pool of liabilities to meet bailin requirements. However, lack of cross-border coordination on resolution plans and their recognition
remains a key risk;
• Updated EU rules for market structure, pre- and post-trade transparency for fixed income, currency and
commodities business (FICC), investor protection, market abuse and sanctions through the Markets in
Financial Instruments Directive (MiFID) and the Market Abuse Directive (MAD). MiFID also introduces
the globally agreed trading mandate for OTC derivatives in the EU. The new rules could have a
substantial impact on the way Deutsche Bank trades with clients, its willingness to deploy risk capital
and the way it distributes products;
123
• Direct prudential supervision of Deutsche Bank by the European Central Bank (ECB) (under the single
supervisory mechanism) starting on November 4, 2014; currently the ECB is conducting a
comprehensive assessment of all banks which will be directly supervised by the ECB in the future,
including Deutsche Bank; and
• Measures to further integration of the European single market for financial services and the European
Banking Union, including: the single resolution mechanism in the participating member states,
harmonized rules for deposit guarantee schemes, and bank accounts.
The impact of these final and near-final reforms cannot be fully known given their potential interaction with
proposals subject to ongoing negotiation and emerging new proposals. As such, uncertainty remains over
the cumulative impact of regulatory reforms on Deutsche Bank, competitors and financial services.
New or ongoing regulatory reforms
Areas of ongoing or new regulatory reform where there is a high level of uncertainty over what the detailed
final requirements will entail but which have the potential to increase pressure on the scope of the bank’s
activities, balance sheet size and profitability include:
• Outstanding elements of the Basel 3 framework and ongoing review of other elements of the Basel 3
framework, particularly global and national calibration of the leverage ratio, liquidity coverage ratio and
net stable funding ratio, but also capitalization for exposures to central counterparties (CCPs), the
fundamental review of the trading book and work on securitization and risk-weighted assets;
• Further proposals for capital, liquidity and other prudential, operational or structural requirements for
financial institutions considered systemically important at a national level;
• Legislation that would affect the competitive position of European headquartered banks, such as the
potential introduction of a Financial Transaction Tax in several EU countries, or EU legislation requiring
structural reforms to separate market making from deposit taking in banks with trading assets above a
certain threshold following the Liikanen recommendations;
• Increased regulation of financial market activities, like investment funds, benchmarks and indices,
payment services and “shadow banking”. The latter includes new requirements for money market
funds and securities financing markets currently under discussion, as well as future proposals on other
non-bank financial institutions; and
• Final standards restricting large exposures adopted by the Basel Committee that limit a bank’s
exposures to a single counterparty to 25 % of its Tier 1 capital (instead of 25 % of the sum of its Tier 1
and 2 capital) and further limit exposures between banks designated as global systemically important
banks to 15 % of Tier 1 capital, which are proposed to apply from January 1, 2019.
Uncertainty regarding the final shape and interaction of these initiatives make it difficult to assess the
associated risks and their potential impact. In particular, the requirement to comply with different regulatory
regimes in different jurisdictions, including potentially conflicting or duplicative requirements, may
substantially increase the cost and administrative burden of implementing these reforms. Regulatory
measures in individual jurisdictions which go beyond the regulatory standards agreed on globally may also
result in an unlevel competitive playing field between financial institutions from different jurisdictions.
Climate change, environmental and social issues
Many governments, corporations and investors are increasing their focus on climate change, environmental
and social issues by enacting legislation, changing business models, setting business operational policies
and changing investment decision making. Respected authorities estimate that the total impact of these
actions is insufficient to reduce the risks of climate change. The number and strength of government,
corporate and investor actions may therefore increase over time as climate change has a greater impact on
society. This affects the financial services industry, in particular in connection with projects that contribute
to or mitigate climate change, as well as other environmental and societal impacts. Projects and products
that contribute to climate change or other negative environmental or social impacts, as well as their
financing and other services for these projects, are being reviewed more critically by investors, customers,
environmental authorities, non-governmental organizations and others. At Deutsche Bank such review is
conducted based on the Deutsche Bank Group Environmental and Social Reputational Risk Framework.
Where Deutsche Bank’s own assessment of these issues so indicates, it may abstain from participating in
such projects. By contrast, projects and products that aim to mitigate climate change or other
environmental pressures are increasingly seeking financing and other financial services; these offer growth
opportunities for many of its businesses. Deutsche Bank’s research indicates that companies incorporating
the best environmental, social and governance practices are able to raise capital at a lower cost and may be
124
able to achieve superior risk adjusted returns. Moreover, Deutsche Bank notes that investors, customers
and others increasingly take the overall approach of companies to climate change, including the direct and
indirect carbon emissions of their operations, into consideration in their decisions, even where such
emissions are minimal. Deutsche Bank has undertaken a number of measures to reduce its carbon
emissions over time, such as a comprehensive renovation of its world headquarters in Germany to bring
the energy efficiency of these buildings to the highest possible level for similar office towers. Combined
with other measures, Deutsche Bank has significantly reduced its emissions. These efforts are recognized
with the highest rankings in many industry assessments.
Corporate Divisions
Corporate Division Overview
CB&S is made up of the business divisions Corporate Finance and Markets. These businesses offer
financial products worldwide including the underwriting of stocks and bonds, trading services for investors
and the tailoring of solutions for companies’ financial requirements.
The CB&S businesses are supported by the Credit Portfolio Strategies Group (CPSG), which has
responsibility for a range of loan portfolios and from 2013 centralized the hedging of certain uncollateralized
counterparty derivative exposure, actively managing the risk of these through the implementation of a
structured hedging regime.
During the first quarter 2014, the following changes in the organizational structure affected the composition
of CB&S business segments: During the fourth quarter of 2013, the decision was taken to scale down and
discontinue elements of the commodities business. The portfolios containing discontinued activities were
aggregated under the Special Commodities Group (SCG), which has been subsequently transferred from
CB&S to NCOU in the first quarter of 2014. SCG contains assets, liabilities and contingent risks related to
Energy, Agriculture, Base Metals and Dry Bulk exposures. The comparatives for CB&S and NCOU have
been restated, accordingly. The continued commodities business remains in CB&S.
Effective in November 2012, following a comprehensive strategic review of the Group’s organizational
structure, CB&S was realigned as part of the Group’s new banking model. This realignment covered three
main aspects: the transfer of non-core assets (namely correlation and capital intensive securitization
positions, monoline positions, and IAS 39 reclassified assets) to the NCOU; the transfer of passive and
third-party alternatives businesses, such as ETF’s, into the newly integrated DeAWM corporate division;
and a refinement of coverage costs between CB&S and GTB.
In CB&S, Deutsche Bank has made the following significant capital expenditures or divestitures since
January 1, 2011:
In March 2012, Deutsche Bank completed the sale of its U.S. multi-family financing business (Deutsche
Bank Berkshire Mortgage) to a group led by Lewis Ranieri and Wilbur L. Ross, in line with its desire to focus
on its core business strengths in the U.S.
In June 2012, Deutsche Bank completed the sale of DB Export Leasing GmbH to Interoute
Communications Limited.
In January 2011, Deutsche Bank sold its 40 % stake in Paternoster Limited, a specialist pension insurer, to
Rothesay Life, in accordance with the decision of the majority of Paternoster shareholders to sell their
shares in the company.
In July 2011, Deutsche Bank completed the sale of its equity linked note giving economic exposure to
Newlands, a credit derivative product company incorporated in Bermuda, to funds advised by Oakhill
Advisors.
Products and Services
Within the Corporate Finance business division, Deutsche Bank’s clients are offered mergers and
acquisitions, equity and debt financing and general corporate finance advice. In addition, Deutsche Bank
provides a variety of financial services to the public sector.
The Markets business division is responsible for the sales, trading and structuring of a wide range of fixed
income, equity, equity-linked, foreign exchange and commodities products. The division aims to deliver
solutions for the investing, hedging and other needs of customers. As part of increasing the efficiency of
the business, Deutsche Bank’s Rates, Flow Credit and FX businesses now operate as an integrated
business with a single management team. The Structured Finance business encompasses non-flow
financing and structured risk for clients across all industries and asset classes.
125
All Deutsche Bank’s trading activities are covered by its risk management procedures and controls which
are described in detail in the section “Risk Management” of this Prospectus.
Distribution Channels and Marketing
In CB&S, the focus of Deutsche Bank’s corporate and institutional coverage bankers and sales teams is on
client relationships. Deutsche Bank has restructured its client coverage model so as to provide varying
levels of standardized or dedicated services to its customers depending on their needs and level of
complexity.
GTB delivers commercial banking products and services to corporate clients and financial institutions,
including domestic and cross-border payments, financing for international trade, as well as the provision of
trust, agency, depositary, custody and related services. Its business divisions consist of:
• Trade Finance and Cash Management Corporates
• Trust & Securities Services and Cash Management Financial Institutions
With effect from September 1, 2013, Deutsche Bank established an aligned and integrated commercial
banking coverage for small and mid-sized corporate clients in Germany in order to strengthen its leading
market position and achieve sustainable growth as part of the Strategy 2015+ in its home market. As a
result, a significant part of former CB&S German MidCap clients will be covered by a newly established
joint venture between the corporate divisions PBC and GTB to provide mid-sized corporate clients with both
an enhanced client proximity and targeted access to Deutsche Bank’s global network and product
expertise.
Furthermore, the long-term cash lending portfolio with German MidCap clients was transferred from the
corporate division CB&S to the corporate division GTB in order to further leverage the adjacencies between
the cash management, trade financing and lending activities with these clients.
In GTB, Deutsche Bank has made following significant capital expenditures or divestitures since January 1,
2011:
On February 28, 2014, Deutsche Bank completed the sale of registrar services GmbH to Link Market
Services.
On June 1, 2013, Deutsche Bank completed the sale of Deutsche Card Services to EVO Payments
International.
Trade Finance offers local expertise, a range of international trade products and services (including
financing), custom-made solutions for structured trade and the latest technology across Deutsche Bank’s
international network so that clients can better manage the risks and other issues associated with their
cross-border and domestic trades.
Cash Management caters to the needs of a diverse client base of corporates and financial institutions. With
the provision of a comprehensive range of innovative and robust solutions, Deutsche Bank handles the
complexities of global and regional treasury functions including customer access, payment and collection
services, liquidity management, information and account services and electronic bill presentation and
payment solutions.
Trust & Securities Services provides a range of trust, payment, administration and related services for
selected securities and financial transactions, as well as domestic securities custody in more than
30 markets.
GTB develops and markets its own products and services in Europe, the Middle East, Asia and the
Americas. The marketing is carried out in conjunction with the coverage functions both in this division, in
CB&S and in PBC.
Customers can be differentiated into two main groups: (i) financial institutions, such as banks, mutual funds
and retirement funds, broker-dealers, fund managers and insurance companies, and (ii) multinational
corporations, large local corporates and medium-sized companies, predominantly in Germany and the
Netherlands.
126
Deutsche Asset & Wealth Management Group Division
With € 934 billion of invested assets as of March 31, 2014, DeAWM believes itself to be one of the world’s
leading investment organizations. DeAWM helps individuals and institutions worldwide to protect and grow
their wealth, offering traditional and alternative investments across all major asset classes. DeAWM also
provides customized wealth management solutions and private banking services to high-net-worth and
ultra-high-net-worth individuals and family offices.
DeAWM comprises the former Private Wealth Management (PWM) and Asset Management (AM)
businesses, as well as passive and third party alternatives businesses that were transferred from CB&S in
the fourth quarter 2012. The combined division has sizable franchises in wealth management and both retail
and institutional asset management, allowing clients and Deutsche Bank Group to benefit from its scale.
Non-core assets and businesses were re-assigned from DeAWM to the NCOU in the fourth quarter 2012.
In Wealth Management, Deutsche Bank established the Deutsche Oppenheim Family Office in Germany by
merging two previously separate family offices. By combining Oppenheim Vermögenstreuhand GmbH and
Wilhelm von Finck Deutsche Family Office AG, Deutsche Bank created a top tier participant in Germany’s
family wealth sector and one of the leading providers in Europe.
DeAWM’s investment capabilities span both active and passive strategies, and a diverse array of asset
classes including equities, fixed income, property, infrastructure, private equity and hedge funds. The
division also offers customized wealth management solutions and private banking services, including
lending and discretionary portfolio management.
A Solutions and Trading Group was established in 2013, which sits between product manufacturing and
distribution teams. It facilitates the creation of high quality products and solutions that are aligned with
client needs. It also manages a disciplined product selection process for the wealth management business,
which covers both internal and third-party products.
Global Coverage/Advisory teams manage client relationships, provide advice and assist clients to access
DeAWM’s products and services. DeAWM also markets and distributes its offering through other business
divisions of Deutsche Bank Group, notably PBC for retail customers and CB&S for select institutional and
corporate customers, as well as through third-party distributors. To ensure holistic service and advice, all
clients have a single point of access to DeAWM, with dedicated teams serving specific client groups.
A major competitive advantage for DeAWM is the fact that it is part of Deutsche Bank, with its broad
investment banking, corporate banking and asset management capabilities. To optimize cross-divisional
cooperation, in 2013 DeAWM established a Key Client Partners (KCP) team, which serves sophisticated
clients with complex needs. KCP provides seamless access to capital markets, investment management
and other solutions from DeAWM, CB&S and selected third-party providers.
PBC operates under a single retail banking business model across Europe and selected Asian markets. PBC
serves retail and affluent clients as well as small and medium sized business customers.
The PBC corporate division comprises three business units under one strategic steering, supported by a
joint services and IT platform:
• Private & Commercial Banking, which comprises all of PBC’s activities in Germany under the Deutsche
Bank brand;
• Advisory Banking International, which covers PBC’s activities in Europe (outside Germany) and Asia
including Deutsche Bank’s stake in and partnership with Hua Xia Bank; and
• Postbank, which comprises among others Postbank, norisbank, BHW.
In Germany in 2013 Deutsche Bank launched its Private- & Commercial Banking business and advanced its
integration of Postbank. The integration of Deutsche Bank’s German mid cap clients into PBC is intended to
enable Deutsche Bank to capture new opportunities from small and medium sized business clients by
improving its client proximity and cross-divisional collaboration leveraging the expertise of DB Group.
127
Postbank continues to operate in the market with its own brand. With the integration of Postbank into PBC,
Deutsche Bank seeks to significantly strengthen its joint business model and to generate considerable
revenue and cost synergies.
In Continental Europe Deutsche Bank operates its Advisory Banking International business unit in five major
banking markets: Italy, Spain, Poland, Belgium and Portugal. Its position is focused on attractive European
regions. In Asia, PBC operates a branch network supported by a mobile sales force in India and holds a
19.99 % stake in the Chinese Hua Xia Bank, with which Deutsche Bank has a strategic partnership and
cooperation agreement. In India, PBC currently has seventeen branches. Deutsche Bank considers India
and China to be its core markets in Asia for PBC.
In PBC, Deutsche Bank has made the following significant capital expenditures or divestitures since
January 1, 2011:
In March 2012, Postbank and Deutsche Bank’s wholly owned subsidiary DB Finanz-Holding GmbH (“DB
Finanz-Holding”) agreed to enter into a domination and profit and loss transfer agreement according to
Section 291 of the German Stock Corporation Act, with DB Finanz-Holding as controlling company and
Postbank as dependent. The agreement became effective in June 2012 and reached final legal validity on
September 11, 2012. The share in Postbank held at the end of 2013 is 94.1 %.
In February 2012, Deutsche Bank exchanged a mandatorily-exchangeable bond issued by Deutsche Post in
February 2009 into 60 million Postbank shares (and cash) and one day later Deutsche Post exercised its
option to sell to Deutsche Bank an additional 12.1 % of the share capital in Postbank. Together with shares
held at this point in time, Deutsche Bank’s ownership in Postbank increased to 93.7 %.
In April 2011, Deutsche Bank completed the subscription of newly issued shares in Hua Xia Bank Co. Ltd.
Upon final settlement of the transaction, which was effective with the registration of the new shares on
April 26, 2011 this investment increased its existing equity stake in Hua Xia Bank from 17.12 % to 19.99 %
of issued capital, the maximum single foreign ownership level permitted by Chinese regulations.
PBC offers a similar range of banking products and services throughout Europe and Asia, with some
variations among countries that are driven by local market, regulatory and customer requirements.
Deutsche Bank offers Investment and Insurance, Mortgages, Business Products, Consumer Finance,
Payments, Cards & Accounts, Deposits, mid-cap related products provided by other divisions as part of its
mid-cap joint venture, as well as postal services and non-bank products in Postbank. Revenues resulting out
of latter are currently reported under “Other revenues” and are separated to provide more transparency on
PBC’s revenue composition.
Deutsche Bank’s investment products cover the full range of mutual / closed-end funds (single- and multiassets), structured products as well as discretionary portfolio management and securities custody services.
In addition Deutsche Bank provides life- and non-life insurance products as well as corporate pension
schemes to its clients.
Deutsche Bank offers standard to complex mortgage solutions and its mortgage product portfolio is
complemented by public subsidies, mortgage brokerage and mortgage-related insurance.
Deutsche Bank’s business products focus on managing transactions, risk and liquidity for its clients. In
corporate banking and international services Deutsche Bank optimizes cash flow and market volatility and
support business expansions. In addition its loan product offering consists of personal installment loans,
credit lines and overdrafts as well as point of sale (POS) business.
Deutsche Bank’s payments, cards and account products provide domestic, international and SEPA
payments, debit, credit and prepaid cards as well as current accounts for private clients and business
clients. Its deposits portfolio consists of sight deposits, term deposits and savings.
Deutsche Bank’s lending businesses are subject to its credit risk management processes. Please see the
Sections “Risk Management—Credit Risk—Monitoring Credit Risk” and “Risk Management—Credit Risk—
Main Credit Exposure Categories” in this Prospectus.
In following a client-centric banking approach, Deutsche Bank seeks to optimize the interaction with its
customers as well as the accessibility and availability of its services. PBC uses a broad multi-channel
approach to serve its customers and distribute financial solutions depending on local strategic positioning
and business model.
• Branches: Within its branches, Deutsche Bank generally offers the entire range of products and advice.
128
• Financial Agents: In most countries, Deutsche Bank additionally markets its retail banking products and
services through self-employed financial agents.
• Customer Contact Centers: Deutsche Bank’s Customer Contact Centers provide clients with remote
services (i.e., account information, securities brokerage) supported by automated systems.
• Online and Mobile Banking: On its websites, Deutsche Bank offers clients a broad variety of relevant
product information and services including interactive tools, tutorials and rich media content. Deutsche
Bank provides a high performing transaction-platform for banking, brokerage and self-services, combined
with a highly frequented multi-mobile offering for smartphones and tablets.
• Self-service Terminals: These terminals support Deutsche Bank’s branch network and allow clients to
withdraw and transfer funds, receive custody account statements and make appointments with
Deutsche Bank’s financial advisors.
Moreover, Deutsche Bank enters into country-specific distribution and cooperation arrangements. In
Germany, Deutsche Bank maintains cooperation partnerships with companies such as DP DHL (Postbank
cooperation) and Deutsche Vermögensberatung AG (DVAG). With DVAG, Deutsche Bank distributes its
mutual funds and other banking products through DVAG’s independent distribution network. In order to
complement its product range, Deutsche Bank has signed distribution agreements, in which PBC
distributes the products of product suppliers. These include an agreement with Zurich Financial Services for
insurance products, and product partnerships with thirteen fund companies for the distribution of their
investment products.
To achieve a strong brand position internationally, Deutsche Bank markets its services consistently
throughout the European and Asian countries it considers to be part of its strategic focus.
In November 2012, Deutsche Bank established the NCOU to operate as a separate division alongside
Deutsche Bank’s core businesses. As set out in Strategy 2015+, Deutsche Bank’s objectives in setting up
the NCOU are to improve external transparency of its non-core positions; to increase management focus on
the core operating businesses by separating the non-core activities; and to facilitate targeted accelerated
de-risking.
The NCOU manages assets with a value of approximately € 50.7 billion and CRR/CRD 4 fully loaded RWA
equivalent of € 57.7 billion, as of March 31, 2014.
During the first quarter 2014, the following changes in the organizational structure and composition of
CB&S business segments affected NCOU: During the fourth quarter of 2013, the decision was taken to
scale down and discontinue elements of the commodities business. The portfolios containing discontinued
activities were aggregated under the Special Commodities Group (SCG), which has been subsequently
transferred from CB&S to NCOU in the first quarter of 2014. SCG contains assets, liabilities and contingent
risks related to Energy, Agriculture, Base Metals and Dry Bulk exposures. The comparatives for CB&S and
NCOU have been restated, accordingly. The continued commodities business remains in CB&S.
In addition to managing Deutsche Bank’s global principal investments and holding certain other non-core
assets to maturity, targeted de-risking activities within the NCOU will help Deutsche Bank reduce risks that
are not related to its planned future strategy, thereby reducing capital demand. In carrying out these
targeted de-risking activities, the NCOU will prioritize for exit those positions with less favorable capital and
risk return profiles to enable the Bank to strengthen its CRR/CRD 4 pro forma fully loaded Common Equity
Tier 1 ratio.
The NCOU’s portfolio includes activities that are non-core to the Bank’s strategy going forward; assets
materially affected by business, environment, legal or regulatory changes; assets earmarked for de-risking;
assets suitable for separation; assets with significant capital absorption but low returns; and assets exposed
to legal risks. In addition, certain liabilities were also assigned to the NCOU following similar criteria to those
used for asset selection, e.g. liabilities of businesses in run-off or for sale, legacy bond issuance formats
and various other short-dated liabilities, linked to assigned assets.
In RWA terms the majority now relates to legacy CB&S assets, and includes credit correlation trading
positions, securitization assets, exposures to monoline insurers and assets reclassified under IAS 39.
NCOU’s portfolio also includes legacy PBC assets such as selected foreign residential mortgages as well as
other financial investments no longer deemed strategic for Postbank. The assets previously managed in the
former Group Division Corporate Investments relate to the Bank’s global principal investment activities and
include Deutsche Bank’s stakes in the port operator Maher Terminals and the casino/hotel The
Cosmopolitan of Las Vegas.
129
During 2013 significant sales were executed from across portfolios, including € 3.2 billion of GIIPS bond
exposures and a further U.S. $ 2.5 billion of bonds from legacy investment portfolios of Postbank. In
addition de-risking of approximately € 4 billion of CRE exposure including IAS 39 reclassified assets was
completed in the period together with approximately € 4 billion of additional asset reductions generated by
disposals from structured credit portfolios in the EU and U.S. regions.
Deutsche Bank has also made the following significant divestitures since January 1, 2011:
In December 2013, Deutsche Postbank AG completed the sale of an approximately £ 1.4 billion U.K.
commercial real estate loan portfolio to GE Capital Real Estate.
In June 2013, PB Capital Corporation completed the sale of an approximately U.S. $ 3.7 billion U.S.
commercial real estate loan portfolio to San Francisco based Union Bank, N.A., an indirect subsidiary of
Mitsubishi UFJ Financial Group, Inc.
In May 2013, Sicherungseinrichtungsgesellschaft deutscher Banken mbH (“SdB”) fully repaid the remaining
exposure (of which € 0.8 billion was allocated to the former Corporate Investments, now part of the
NCOU) of ECB-eligible notes guaranteed by the SoFFin (Sonderfonds Finanzmarktstabilisierung, established
in October 2008 by the German government in the context of the financial crisis).
In January 2013, Deutsche Bank completed the sale of its 15 % participation in Dedalus GmbH & Co.
KGaA, through which Deutsche Bank indirectly held approximately 1.1 % of the shares in EADS N.V. for a
consideration of approximately € 250 million.
In October 2012, Deutsche Bank exited its exposure to Actavis, the generic pharmaceuticals company,
upon completion of Watson Pharmaceuticals’ acquisition of the company.
In September 2012 Deutsche Bank signed an agreement regarding the sale of BHF-BANK AG to Kleinwort
Benson Group and RHJ International. The transaction structure was revised in October 2013. Deutsche
Bank closed the sale of BHF-BANK AG towards the end of March 2014 after the German Federal Financial
Supervisory Authority, BaFin, had confirmed that it had no objections to this acquisition. Deutsche Bank
received total consideration subject to closing purchase price adjustments of € 340 million, comprised of
€ 309 million in cash and € 31 million RHJ International shares issued at par value.
In November 2011, Deutsche Bank closed an agreement for the sale of its premises at Taunusanlage 12 in
Frankfurt am Main to a closed-end real estate fund launched by DWS. The sales price for the property
determined by independent valuations was approximately € 600 million. Deutsche Bank continues to use
these premises as Group headquarters under a long-term lease.
In the course of 2011, the liquidity facility for FMS Wertmanagement Anstalt des öffentlichen Rechts, the
winding-up agency of the Hypo Real Estate Group, of € 7.5 billion (of which € 6.4 billion was allocated to
the former Corporate Investments and the remainder was allocated to other corporate divisions), in which
Deutsche Bank participated in December 2010, was fully repaid.
Infrastructure and Regional Management
The infrastructure group consists of Deutsche Bank’s centralized business support areas. These areas
principally comprise control and service functions supporting Deutsche Bank’s five corporate divisions.
This infrastructure group is organized to reflect the areas of responsibility of those Management Board
members that are not in charge of a specific business line. The infrastructure group is organized into COO
functions (i.e., global technology, global business services, global logistics services and group strategy, CFO
functions (i.e., finance, tax, insurance and treasury), CRO functions (i.e., credit risk management and market
risk management), CEO functions (i.e., communications & corporate social responsibility and Deutsche
Bank Research) and HR, Legal & Compliance functions.
The Regional Management function covers regional responsibilities worldwide. It focuses on governance,
franchise development and performance development. Regional and country heads and management
committees are established in the regions to enhance client-focused product coordination across
businesses and to ensure compliance with regulatory and control requirements, both from a local and
Group perspective. In addition the Regional Management function represents regional interests at the
Group level and enhances cross-regional coordination.
All expenses and revenues incurred within the Infrastructure and Regional Management areas are fully
allocated to Deutsche Bank’s five corporate divisions.
Property and Equipment
As of March 31, 2014, Deutsche Bank operated in 71 countries out of 2,853 branches around the world, of
which 66 % were in Germany. Deutsche Bank leases a majority of its offices and branches under long-term
agreements.
130
Deutsche Bank continues to review its property requirements worldwide taking into account cost
containment measures as well as growth initiatives in selected businesses. The following table shows the
material properties occupied by Deutsche Bank as of the date of this Prospectus:
Premises
60 Wall Street
Address
60 Wall Street, New York
Size (sqm)
151,012
Use of Property
Office building / Trading
room
Ownership
leased
Taunusanlage 12
Taunusanlage 12, Frankfurt
am Main
75,787
Office building
leased
International
Commerce Centre
1 Austin Road West,
Hong Kong
39,366
Office building
leased
Winchester House
100 Old Broad Street, London
29,082
Office building / Trading
room
leased
One Raffles Quay
One Raffles Quay, Singapore
25,989
Office building
leased
As of March 31, 2014, Deutsche Bank had property and equipment with a total carrying amount of
€ 4,318 million of which the carrying amount of € 2,153 million was accounted for as owner occupied
properties. Additional information on Deutsche Bank Group’s property and equipment and related lease
arrangements is set out in Note 23 and Note 24 to the consolidated financial statements of Deutsche Bank
for the fiscal year 2013 which are contained in the section “Financial Statements” of this Prospectus.
Intellectual Property Rights, Licenses, Domains
The Company has protected or filed applications for protection under trademark law for a large number of
service marks in Germany and in some foreign jurisdictions. These include, for example, the trademarks
“Deutsche Bank”, the slash of the diagonal within the quadrate frame, the so called “logo” as well as the
relevant service trademarks. In addition to the Internet domain “deutsche-bank.de”, the Company has
registered numerous other Internet domains and believes that it has thereby established a sufficient basis
for its online banking and its other Internet operations. The Company endeavors to protect its products and
services in their target markets, in particular under trademark law, to the extent economically reasonable.
The Company believes that Deutsche Bank’s patents, design and utility models play a secondary role in its
business.
Investments
The following table shows the investments by Deutsche Bank in property and equipment, in equity method
investments as well as in acquisitions accounted for as business combinations for fiscal years 2013, 2012
and 2011, determined based on information in the Company’s consolidated statements of cash flows and
the notes to its consolidated financial statements for fiscal years 2013, 2012 and 2011:
in € m.
Property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Equity method investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Business combinations(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013
2012
2011
513
614
794
21
14
602
36
3
1
Source: Deutsche Bank Group data
1 Unaudited.
Property and equipment. In 2011, investments of € 794 million in property and equipment predominantly
concerned € 343 million for construction projects (sites under construction), € 309 million for procurement
of furniture and equipment and € 142 million for others of which the main position was € 111 million in
leasehold improvements.
In 2012, investments of € 614 million in property and equipment predominantly concerned € 137 million for
construction projects (sites under construction), € 326 million for procurement of furniture and equipment
and € 151 million for others of which the main position was € 133 million in leasehold improvements.
In 2013, investments of € 513 million in property and equipment predominantly concerned € 113 million for
construction projects (sites under construction), € 247 million for procurement of furniture and equipment
and € 154 million for others of which the main position was € 111 million in leasehold improvements.
Equity method investments. Investments in entities accounted for using the equity method relate to the
purchase of a number of shareholdings and arise as part of Deutsche Bank’s day to day business. In 2011
the Group completed the transaction with Hua Xia Bank which led to the application of equity method
131
accounting of that investment. In 2012 and 2013, no principal equity method investments were made.
Further information about investments in companies which are accounted for using the equity method is
included in Note 17 to the consolidated financial statements of Deutsche Bank for the fiscal year 2013,
which are contained in the section “Financial Statements” of this Prospectus.
Business Combinations. In 2011, the Group completed several acquisitions that were accounted for as
business combinations, none of which were individually significant. Among these transactions was the
step-acquisition of the outstanding interests in Deutsche UFG Capital Management (“DUCM”), one of
Russia’s largest independent asset management companies. Offsetting these investment amounts in 2011
was the cash receipt in 2011 pending from ABN AMRO in connection with the a purchase price reduction
recorded in the fourth quarter 2010.
In 2012, the Group did not undertake any acquisitions accounted for as business combinations. A
contingent liability of € 3 million, which was booked at closing as purchase consideration for the acquisition
of DUCM in 2011, was paid in 2012.
In 2013, Deutsche Bank completed the purchase of the remaining 51 % of the shares in its joint venture
Xchanging etb GmbH (“Xetb”), which is the holding company of Xchanging Transaction Bank GmbH
(“XTB”). The preliminary purchase price paid for the step-acquisition amounted to € 36 million and was fully
paid for in cash. Further information about this investment is included in Note 3 to the consolidated financial
statements of Deutsche Bank for the fiscal year 2013. The 2013 consolidated financial statements of
Deutsche Bank are contained in the section “Financial Statements” of this Prospectus.
Other Investments
Other than as described above, Deutsche Bank has not made any material investments since 2011 to date.
At the date of this Prospectus, there are no ongoing material investments and no plans for material
investments for which Deutsche Bank’s management bodies have already resolved or made firm
commitments.
Legal Proceedings
The Group operates in a legal and regulatory environment that exposes it to significant litigation risks. As a
result, the Group is involved in litigation, arbitration and regulatory proceedings and investigations in
Germany and in a number of jurisdictions outside Germany, including the United States, arising in the
ordinary course of business.
Other than set out herein, Deutsche Bank is not involved (whether as defendant or otherwise) in, nor does
it have knowledge of, any pending or threatened legal, arbitration, administrative or other proceedings that
may have, or have had in the recent past, a significant effect on the financial position or profitability of
Deutsche Bank AG or Deutsche Bank Group. Furthermore, other than as set out herein, there have been no
legal, arbitration, administrative or other proceedings within the last twelve months and no such
proceedings have been concluded during such period which may have, or have had in the recent past, a
significant effect on the financial position or profitability of the Bank or Deutsche Bank Group.
City of Milan Matters
In January 2009, the City of Milan (the “City”) issued civil proceedings in the District Court of Milan against
Deutsche Bank and three other banks (together the “Banks”) in relation to a 2005 bond issue by the City
(the “Bond”) and a related swap transaction which was subsequently restructured several times between
2005 and 2007 (the “Swap”) (the Bond and Swap together, the “Transaction”). The City sought damages
and/or other remedies on the grounds of alleged fraudulent and deceitful acts and alleged breach of
advisory obligations. During March 2012, the City and the Banks agreed to discharge all existing civil claims
between them in respect of the Transaction, with no admission of liability by the Banks. While some
aspects of the Swap remain in place between Deutsche Bank and the City, others were terminated as part
of the civil settlement. As a further condition of the civil settlement, the sums seized from the Banks by the
Milan Prosecutor (in the case of Deutsche Bank, € 25 million) were returned by the Prosecutor to the
Banks, despite this seizure having been part of the trial described below. Deutsche Bank also received a
small interest payment in respect of the seized sum.
In March 2010, at the Milan Prosecutor’s request, the Milan judge of the preliminary hearing approved the
indictment of each of the Banks and certain of their employees (including two current employees of
Deutsche Bank). The indictments of the employees were for alleged criminal offences relating to the Swap
and subsequent restructuring, in particular fraud against a public authority. The Banks were charged with an
administrative (non-criminal) offence of having systems and controls that did not prevent the employees’
alleged crimes. A first instance verdict was handed down on December 19, 2012. This verdict found all the
132
Banks and certain employees, including the two Deutsche Bank employees, guilty of the charges against
them. A reasoned judgment was handed down on February 3, 2013. Deutsche Bank and its employees
filed appeals of this judgment in May 2013, and the appeals commenced on January 30, 2014. On March 7,
2014, the Milan Court of Appeal upheld all the grounds of appeal and quashed both the criminal convictions
of the employees and the administrative liability of the Banks. The prosecutor has yet to decide whether to
appeal to the Supreme Court.
Corporate Securities Matters
Deutsche Bank and Deutsche Bank Securities Inc. (“DBSI”) regularly act in the capacity of underwriter and
sales agent for debt and equity securities of corporate issuers and are from time to time named as
defendants in litigation commenced by investors relating to those securities.
Deutsche Bank and DBSI, along with numerous other financial institutions, have been sued in the United
States District Court for the Southern District of New York in various actions in their capacity as
underwriters and sales agents for debt and equity securities issued by American International Group, Inc.
(“AIG”) between 2006 and 2008. The complaint alleges, among other things, that the offering documents
failed to reveal that AIG had substantial exposure to losses due to credit default swaps, that AIG’s real
estate assets were overvalued, and that AIG’s financial statements did not conform to GAAP. Fact
discovery is complete. On January 30, 2014, the Court stayed the case until the Supreme Court renders its
decision in Halliburton, a case involving unrelated parties but relating to the legal issue of class certification.
The underwriter and sales agent defendants, including Deutsche Bank and DBSI, received a customary
agreement to indemnify from AIG as issuer in connection with the offerings, upon which they have notified
AIG that they are seeking indemnity.
DBSI, along with numerous other financial institutions, was named as a defendant in a putative class action
lawsuit pending in the United States District Court for the Southern District of New York relating to alleged
misstatements and omissions in the registration statement of General Motors Company (“GM”) in
connection with GM’s November 18, 2010 initial public offering (“IPO”). DBSI acted as an underwriter for
the offering. A motion to dismiss has been fully briefed and is pending. The underwriters, including DBSI,
received a customary agreement to indemnify from GM as issuer in connection with the offerings, upon
which they have notified GM that they are seeking indemnity.
DBSI, along with other financial institutions, was named as a defendant in a putative class action lawsuit
pending in the United States District Court for the Southern District of New York in April 2009 alleging
material misstatements and/or omissions in the offering documents of General Electric Co.’s (“GE”)
October 2008 Common Stock Offering. DBSI acted as an underwriter in the offering. A settlement between
GE and the plaintiffs has been reached and was approved by the Court on September 6, 2013. On
October 3, 2013, a shareholder of GE filed a notice of appeal challenging the settlement which was
withdrawn on March 11, 2014.
CO2 Emission Rights
The Frankfurt am Main Office of Public Prosecution (the “OPP”) is investigating alleged value-added tax
(VAT) fraud in connection with the trading of CO2 emission rights by certain trading firms, some of which
also engaged in trading activity with Deutsche Bank. The OPP alleges that certain employees of Deutsche
Bank knew that their counterparties were part of a fraudulent scheme to avoid VAT on transactions in CO2
emission rights, and it searched Deutsche Bank’s head office and London branch in April 2010 and issued
various requests for documents. In December 2012, the OPP widened the scope of its investigation and
again searched Deutsche Bank’s head office. It alleges that certain employees deleted e-mails of suspects
shortly before the 2010 search and failed to issue a suspicious activity report under the Anti-Money
Laundering Act which, according to the OPP, was required. It also alleges that Deutsche Bank filed an
incorrect VAT return for 2009, which was signed by two members of the Management Board, and incorrect
monthly returns for September 2009 to February 2010. Deutsche Bank is cooperating with the OPP.
Credit Default Swap Antitrust Matters
On July 1, 2013, the European Commission (EC) issued a Statement of Objections (the “SO”) against
Deutsche Bank, Markit Group Limited (Markit), the International Swaps and Derivatives Association, Inc.
(ISDA), and twelve other banks alleging anti-competitive conduct under Article 101 of the Treaty on the
Functioning of the European Union (TFEU) and Article 53 of the European Economic Area Agreement (the
“EEA Agreement”). The SO sets forth preliminary conclusions of the EC that (i) attempts by certain entities
to engage in exchange trading of unfunded credit derivatives were foreclosed by improper collective action
in the period from 2006 through 2009, and (ii) the conduct of Markit, ISDA, Deutsche Bank and the twelve
other banks constituted a single and continuous infringement of Article 101 of the TFEU and Article 53 of
133
the EEA Agreement. If the EC finally concludes that infringement occurred, it may seek to impose fines and
other remedial measures on Deutsche Bank, Markit, ISDA and the twelve other banks. Deutsche Bank filed
a response contesting the EC’s preliminary conclusions in January 2014. Deutsche Bank will have the
opportunity to present the key elements of its response at an oral hearing.
Antitrust Litigation regarding Credit Default Swaps
Several putative civil actions have been filed in federal court in the United States District Court for the
Southern District of New York and the United States District Court for the Northern District of Illinois
against Deutsche Bank and numerous other credit default swap (CDS) dealer banks. All of the complaints
allege that the banks conspired to prevent the establishment of exchange traded CDS, with the effect of
raising prices for over-the-counter CDS transactions, and seek to represent a class of individuals and
entities located in the United States or abroad who, during a period from about October 2008 through the
present, directly purchased CDS from or directly sold CDS to the defendants in the United States. All of
these CDS civil actions were consolidated for pre-trial purposes and lead plaintiffs filed a consolidated
amended complaint, followed by a second amended complaint. Defendants intend to file a motion to
dismiss the second amended complaint.
Credit Correlation
Certain regulatory authorities are investigating Deutsche Bank’s bespoke credit correlation trading book and
certain risks within that book, during the credit crisis. Issues being examined include the methodology used
to value positions in the book as well as the robustness of controls governing the application of valuation
methodologies. Deutsche Bank is cooperating with those investigations.
Esch Funds Litigation
Sal. Oppenheim jr. & Cie. AG & Co. KGaA (“Sal. Oppenheim”) was prior to its acquisition by Deutsche Bank
in 2010 involved in the marketing and financing of participations in closed end realestate funds. These funds
were structured as Civil Law Partnerships under German law. Usually, Josef Esch Fonds-Project GmbH
performed the planning and project development. Sal. Oppenheim held an indirect interest in this company
via a joint-venture. In relation to this business a number of civil claims have been filed against Sal.
Oppenheim. Some but not all of these claims are also directed against former managing partners of Sal.
Oppenheim and other individuals. The claims brought against Sal. Oppenheim relate to investments of
originally approximately € 1.1 billion. The investors are seeking to unwind their fund participation and to be
indemnified against potential losses and debt related to the investment. The claims are based in part on an
alleged failure of Sal. Oppenheim to provide adequate information on related risks and other material
aspects important for the investors’ decision. The District Court Bonn dismissed seven lawsuits against Sal.
Oppenheim. Two plaintiffs filed appeals against these decisions. In one lawsuit the District Court Frankfurt
held that Sal. Oppenheim must fully unwind the investment. Sal. Oppenheim has appealed this decision.
FX Investigations and Litigations
Deutsche Bank has received requests for information from certain regulatory authorities globally who are
investigating trading in the foreign exchange market. The Bank is cooperating with those investigations. The
investigations underway have the potential to result in the imposition of significant financial penalties and
other consequences for the Bank. Relatedly, Deutsche Bank is conducting its own internal global review of
foreign exchange trading. In connection with this review, the Bank has taken, and will continue to take,
disciplinary action with regards to individuals if merited. Deutsche Bank is also named as a defendant in a
consolidated putative class action brought in the United States District Court for the Southern District of
New York alleging antitrust claims relating to the alleged manipulation of foreign exchange rates.
Hiring Practices Inquiries
Certain regulatory authorities are examining Deutsche Bank’s hiring practices in the Asia-Pacific region to
determine if any candidates were hired on the basis of referrals from executives at governmental entities
(including state-owned enterprises) in potential violation of the Foreign Corrupt Practices Act or similar laws.
Deutsche Bank is cooperating with these inquiries.
Hydro Dispute
Deutsche Bank was involved in legal proceedings with respect to a hydropower project in Albania. On the
other side were two Italian companies, BEG SpA and Hydro Srl. BEG is Deutsche Bank’s joint venture
partner with respect to the project; Hydro was the joint venture vehicle (owned 55 % by BEG and 45 % by
Deutsche Bank). The dispute centered around whether Deutsche Bank had an obligation to fund
construction of the project in full. Deutsche Bank’s position was that its sole funding obligation with respect
to the project was to provide an equity injection of up to € 35 million, which obligation it has fulfilled.
134
Initially, Deutsche Bank was defendant in an arbitration claim from Hydro in Italy for damages of
€ 411 million for alleged failure to finance the construction of the project (“Rome 1”). In November 2011,
the arbitration panel ruled that there was evidence of some (unspecified) further financing commitment on
Deutsche Bank’s part, and issued an award of approximately € 29 million against Deutsche Bank. Deutsche
Bank appealed to the Court of Appeal in Rome for the award to be set aside. The Court affirmed the award
in July 2013.
Deutsche Bank responded to the Rome 1 arbitration by bringing a claim against BEG in an International
Chamber of Commerce (ICC) arbitration in Paris. The ICC tribunal’s award, which was issued in April 2013,
confirmed inter alia that Deutsche Bank had fulfilled its obligations in respect of the project to date and that
(contrary to the findings of the Italian arbitration panel) no further financing commitment exists on the
Bank’s part. The ICC tribunal also dismissed BEG’s counterclaim of € 242 million in full.
In the fourth quarter of 2012, Hydro launched a new arbitration against Deutsche Bank in Italy (“Rome 2”).
Hydro sought damages of approximately € 490 million in respect of historic losses, with a further
€ 200 million in respect of future losses should the concession to build the power plant be revoked. In
August 2013 the Rome 2 panel issued an award of € 396 million against Deutsche Bank.
In June 2013, Deutsche Bank commenced a new arbitration before the ICC tribunal in Paris, seeking inter
alia recovery of any sums paid by the Bank in connection with the Rome 1 or Rome 2 arbitrations.
On October 30, 2013, Deutsche Bank entered into a settlement with BEG SpA and Hydro Srl resolving all
outstanding proceedings and disputes between the parties. The financial terms of the settlement were not
material to Deutsche Bank.
IBEW Local 90 Class Action
Deutsche Bank and certain of its officers have been named as defendants in a putative class action pending
in the United States District Court for the Southern District of New York brought on behalf of all persons
who acquired Deutsche Bank ordinary shares between January 3, 2007 and January 16, 2009 (the “class
period”). In an amended complaint, plaintiff alleges that during the class period, the value of Deutsche
Bank’s securities was inflated due to alleged misstatements or omissions on Deutsche Bank’s part
regarding the potential exposure to Deutsche Bank arising out of the MortgageIT, Inc. acquisition, and
regarding the potential exposure arising from Deutsche Bank’s RMBS (residential mortgage-backed
securities) and CDO (collateralized debt obligations) portfolio during the class period. Claims are asserted
under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder.
Defendants moved to dismiss the amended complaint. By decision dated March 27, 2013, the Court largely
denied the motion to dismiss as to Deutsche Bank and all but one of the individual defendants. The Court
dismissed all claims by class members who acquired shares outside the United States. Plaintiffs moved for
class action certification on July 1, 2013. Following an evidentiary hearing, the Court issued its decision on
October 29, 2013 denying Plaintiffs’ motion. On January 2, 2014, the parties informed the Court that a
settlement in principle had been reached that will provide for dismissal of the action with prejudice. In
response, on January 6, 2014, the Court ordered that the action be discontinued without costs to any party
and without prejudice to restore the action if such application is made by February 3, 2014. On January 29,
2014, the parties informed the Court that a final settlement had been completed and requested the Court to
provide a dismissal of the action with prejudice. The financial terms of this settlement are not material to
Deutsche Bank.
Interbank Offered Rates Matters
Deutsche Bank has received subpoenas and requests for information from various regulatory and law
enforcement agencies in Europe, North America and Asia Pacific in connection with industry-wide
investigations concerning the setting of London Interbank Offered Rate (LIBOR), Euro Interbank Offered
Rate (EURIBOR), Tokyo Interbank Offered Rate (TIBOR) and other interbank offered rates. Deutsche Bank
is cooperating with these investigations.
The investigations underway have the potential to result in the imposition of significant financial penalties
and other consequences for the Bank.
On December 4, 2013, Deutsche Bank announced that it had reached a settlement with the European
Commission as part of a collective settlement to resolve the European Commission’s investigations in
relation to anticompetitive conduct in the trading of Euro interest rate derivatives and Yen interest rate
derivatives. Under the terms of the settlement agreement, Deutsche Bank agreed to pay € 466 million for
the Euro interest rate derivatives and € 259 million for the Yen interest rate derivatives matters,
respectively, or € 725 million in total. The settlement amount was already substantially reflected in
Deutsche Bank’s existing litigation reserves, and no material additional reserves were necessary. The
135
settlement amount reflects the high market share held by Deutsche Bank in certain of the markets
investigated by the European Commission. Deutsche Bank remains exposed to civil litigation and further
regulatory action relating to these benchmarks.
In the period from mid-2012 to early 2014, four financial institutions entered into settlements with the U.K.
Financial Services Authority, U.S. Commodity Futures Trading Commission and U.S. Department of Justice
(DOJ). While the terms of the various settlements differed, they all involved significant financial penalties
and regulatory consequences. For example, two financial institutions’ settlements included a Deferred
Prosecution Agreement, pursuant to which the DOJ agreed to defer prosecution of criminal charges against
the applicable entity provided that the financial institution satisfies the terms of the Deferred Prosecution
Agreement. The terms of the other two financial institutions’ settlements included Non-Prosecution
Agreements, pursuant to which the DOJ agreed not to file criminal charges against the entities so long as
certain conditions are met. In addition, affiliates of two of the financial institutions agreed to plead guilty to a
crime in a United States court for related conduct.
A number of civil actions, including putative class actions, are pending in federal court in the United States
District Court for the Southern District of New York (SDNY) against Deutsche Bank and numerous other
banks. All but two of these actions were filed on behalf of parties who allege that they held or transacted in
U.S. Dollar LIBOR-based derivatives or other financial instruments and sustained losses as a result of
purported collusion or manipulation by the defendants relating to the setting of U.S. Dollar LIBOR. With two
exceptions, all of the civil actions pending in the SDNY concerning U.S. Dollar LIBOR are being coordinated
as part of a multidistrict litigation (U.S. Dollar LIBOR MDL). In March 2013, the District Court dismissed the
federal and state antitrust claims, claims asserted under the Racketeer Influenced and Corrupt
Organizations Act (RICO) and certain state law claims that had been asserted in six amended complaints.
Appeals to the United States Court of Appeals for the Second Circuit were dismissed as premature; a
petition for a writ of certiorari seeking review of the Second Circuit’s decision has since been filed in the
United States Supreme Court by plaintiffs in one of the actions. Various motions are pending before the
District Court. Additional complaints relating to the alleged manipulation of U.S. Dollar LIBOR have been
filed in, removed to, or transferred to the SDNY and are being coordinated as part of the U.S. Dollar LIBOR
MDL. These additional actions have been stayed. One other action against Deutsche Bank and other banks
concerning U.S. Dollar LIBOR was recently filed in the Northern District of California; a request has been
made to the Judicial Panel on Multidistrict Litigation to have this case transferred to the SDNY for
coordination with the U.S. Dollar LIBOR MDL. An additional action concerning U.S. Dollar LIBOR is
independently pending in the SDNY and is subject to a pending motion to dismiss.
A putative class action was filed against Deutsche Bank and other banks concerning the alleged
manipulation of Yen LIBOR and Euroyen TIBOR. On March 28, 2014, the Court granted defendants’
motions to dismiss claims asserted under U.S. federal antitrust laws and for unjust enrichment, but denied
defendants’ motions as to certain claims asserted under the Commodity Exchange Act. Motions for
reconsideration of the denial of defendants’ motions are pending. Deutsche Bank is also a defendant in a
putative class action concerning the alleged manipulation of Euribor. Defendants’ time to respond to that
complaint has been stayed pending further amendments to the complaint. Claims for damages in these
cases have been asserted under various legal theories, including violations of the Commodity Exchange
Act, federal and state antitrust laws, the Racketeer Influenced and Corrupt Organizations Act, and other
federal and state laws.
Kaupthing CLN Claims
In June 2012, Kaupthing hf, an Icelandic stock corporation, (acting through its Winding-up Committee)
issued Icelandic law clawback claims for approximately € 509 million (plus interest) against Deutsche Bank
in both Iceland and England. The claims relate to leveraged credit linked notes, referencing Kaupthing,
issued by Deutsche Bank to two British Virgin Island Special Purpose Vehicles (“SPVs”) in 2008. The SPVs
were ultimately owned by high net worth individuals. Kaupthing claims to have funded the SPVs and alleges
that Deutsche Bank was or should have been aware that Kaupthing itself was economically exposed in the
transactions. It is claimed that the transactions are voidable by Kaupthing on a number of alternative
grounds, including the ground that the transactions were improper because one of the alleged purposes of
the transactions was to allow Kaupthing to influence the market in its own CDS (credit default swap)
spreads and thereby its listed bonds. Additionally, in November 2012, an English law claim (with allegations
similar to those featured in the Icelandic law claims) was commenced by Kaupthing against Deutsche Bank
in London. Deutsche Bank filed its defense in the Icelandic proceedings in late February 2013 and continues
to defend the claims.
Kirch Litigation
In May 2002, Dr. Leo Kirch personally and as an assignee of two entities of the former Kirch Group, i.e.,
PrintBeteiligungs GmbH and the group holding company TaurusHolding GmbH & Co. KG, initiated legal
136
action against Dr. Rolf-E. Breuer and Deutsche Bank alleging that a statement made by Dr. Breuer (then the
Spokesman of Deutsche Bank’s Management Board) regarding the Kirch Group in an interview with
Bloomberg television on February 4, 2002, was in breach of laws and resulted in financial damage.
On January 24, 2006, the German Federal Supreme Court sustained the action for the declaratory judgment
only in respect of the claims assigned by PrintBeteiligungs GmbH. Such action and judgment did not require
a proof of any loss caused by the statement made in the interview. PrintBeteiligungs GmbH is the only
company of the Kirch Group which was a borrower of Deutsche Bank. Claims by Dr. Kirch personally and by
Taurus-Holding GmbH & Co. KG were dismissed. In May 2007, Dr. Kirch filed an action for payment of
approximately € 1.3 billion plus interest as assignee of PrintBeteiligungs GmbH against Deutsche Bank and
Dr. Breuer. On February 22, 2011, the District Court Munich I dismissed the lawsuit in its entirety. Dr. Kirch
filed an appeal against the decision.
On December 31, 2005, KGL Pool GmbH filed a lawsuit against Deutsche Bank and Dr. Breuer. The lawsuit
was based on alleged claims assigned from various subsidiaries of the former Kirch Group. KGL Pool GmbH
sought a declaratory judgment to the effect that Deutsche Bank and Dr. Breuer are jointly and severally
liable for damages as a result of the interview statement and the behavior of Deutsche Bank in respect of
several subsidiaries of the Kirch Group. In December 2007, KGL Pool GmbH supplemented this lawsuit by a
motion for payment of approximately € 2.0 billion plus interest as compensation for the purported damages
which two subsidiaries of the former Kirch Group allegedly suffered as a result of the statement by
Dr. Breuer. On March 31, 2009, the District Court Munich I dismissed the lawsuit in its entirety. KGL Pool
GmbH appealed the decision. On December 14, 2012, the appellate court altered the judgment by District
Court Munich I and held that Deutsche Bank and Dr. Breuer are liable for damages assigned by one
subsidiary of the former Kirch Group and claimed under the motion for payment, rendered a declaratory
judgment in favor of certain subsidiaries and dismissed the claims assigned by certain other subsidiaries.
On March 12, 2013, the appellate court handed down the written judgment containing the reasons for its
decisions. Deutsche Bank and Dr. Breuer filed a request for leave to appeal with the German Federal
Supreme Court. The appellate court asked a valuation expert to opine on the market value of
ProSiebenSat.1 shares held by Kirch Media before the interview to facilitate its decision on the alleged
damages underlying the payment claim.
On February 20, 2014, at a court hearing before the Munich appellate court, the heir of Dr. Leo Kirch, as
plaintiff in the Printbeteiligungs case, and KGL Pool GmbH on the one side and Deutsche Bank on the other
side entered into a settlement agreement pursuant to which Deutsche Bank agreed to pay € 775 million
(plus interest at the rate of 5 % p.a. since March 24, 2011 and costs in the amount of € 40 million) in
consideration for the plaintiffs withdrawing their claims.
The public prosecutor’s office in Munich is currently conducting criminal investigations against several
former Management Board members and two current Management Board members of Deutsche Bank AG,
Juergen Fitschen and Stephan Leithner, in connection with the Kirch case. The public prosecutors are
investigating whether the two current Management Board members failed to correct in a timely manner
factual statements made by Deutsche Bank’s litigation counsel in submissions filed in a civil case between
Kirch and Deutsche Bank AG before the Munich Higher Regional Court and the Federal Court of Justice,
after allegedly having become aware that such statements were not correct. Under German law, a party in
a civil litigation is under a statutory duty to make sure all factual statements made by it in court are accurate.
The two current Management Board members are targets of the criminal investigation because (unlike the
other current Management Board members of the Bank) they are alleged to have had special knowledge or
responsibility in relation to the Kirch case. The investigation involving former Management Board members
is based on the allegation that the former Management Board members gave incorrect testimony to the
Munich Higher Regional Court.
The Supervisory Board and the Management Board of the Bank have obtained opinions from an
international law firm and a retired president of one of the leading courts of appeal in Germany to the effect
that there is no basis for the accusation of criminal wrongdoing made by the public prosecutors against the
two current Management Board members. Deutsche Bank is cooperating with the Munich public
prosecutor’s office.
KOSPI Index Unwind Matters
Following the decline of the Korea Composite Stock Price Index 200 (“KOSPI 200”) in the closing auction
on November 11, 2010 by approximately 2.7 %, the Korean Financial Supervisory Service (“FSS”)
commenced an investigation and expressed concerns that the fall in the KOSPI 200 was attributable to a
sale by Deutsche Bank of a basket of stocks, worth approximately € 1.6 billion, that was held as part of an
index arbitrage position on the KOSPI 200. On February 23, 2011, the Korean Financial Services
Commission, which oversees the work of the FSS, reviewed the FSS’ findings and recommendations and
resolved to take the following actions: (i) to file a criminal complaint to the Korean Prosecutor’s Office for
137
alleged market manipulation against five employees of the Deutsche Bank group and Deutsche Bank’s
subsidiary Deutsche Securities Korea Co. (DSK) for vicarious liability; and (ii) to impose a suspension of six
months, commencing April 1, 2011 and ending September 30, 2011, of DSK’s business for proprietary
trading of cash equities and listed derivatives and DMA (direct market access) cash equities trading, and the
requirement that DSK suspend the employment of one named employee for six months. There was an
exemption to the business suspension which permitted DSK to continue acting as liquidity provider for
existing derivatives linked securities. On August 19, 2011, the Korean Prosecutor’s Office announced its
decision to indict DSK and four employees of the Deutsche Bank group on charges of spot/futures linked
market manipulation. The criminal trial commenced in January 2012. A verdict in respect of DSK and one of
the four indicted employees may be delivered during 2014. In addition, a number of civil actions have been
filed in Korean courts against Deutsche Bank and DSK by certain parties who allege they incurred losses as
a consequence of the fall in the KOSPI 200 on November 11, 2010. The claimants are seeking damages
with an aggregate claim amount of not less than € 220 million (at present exchange rates) plus interest and
costs. These litigations are at various stages of proceedings, with verdicts in some actions possible during
2014.
Monte Dei Paschi
In February 2013 Banca Monte Dei Paschi Di Siena (“MPS”) issued civil proceedings in Italy against
Deutsche Bank AG alleging that Deutsche Bank fraudulently or negligently assisted former MPS senior
management in an accounting fraud on MPS, by undertaking repo transactions with MPS and “Santorini”, a
wholly owned SPV of MPS, which helped MPS defer losses on a previous transaction undertaken with
Deutsche Bank. MPS claimed at least € 500 million in damages. Subsequently, in July 2013, the Fondazione
Monte Dei Paschi, MPS’ largest shareholder, also issued civil proceedings in Italy for damages based on
substantially the same facts. In December 2013, Deutsche Bank reached an agreement with MPS in
relation to the transactions that resolves the civil proceedings by MPS. The civil proceedings by the
Fondazione Monte Dei Paschi remain pending.
There is also an ongoing criminal investigation by the Siena Public Prosecutor into the transactions and
certain unrelated transactions entered into by a number of other international banks with MPS. No charges
have yet been brought. Separately, Deutsche Bank has also received requests for information in relation to
the transactions from certain regulators relating to the original transactions, including with respect to
Deutsche Bank’s accounting for its MPS-related transactions and alleged failures by Deutsche Bank’s
management adequately to supervise the individuals involved in the matter. Deutsche Bank is cooperating
with these regulators and has commenced its internal employee disciplinary procedures.
Mortgage-Related and Asset-Backed Securities Matters
Deutsche Bank, along with certain affiliates (collectively referred in these paragraphs to as “Deutsche
Bank”), have received subpoenas and requests for information from certain regulators and government
entities concerning its activities regarding the origination, purchase, securitization, sale and/or trading of
mortgage loans, residential mortgage-backed securities (RMBS), collateralized debt obligations, other assetbacked securities, commercial paper and credit derivatives. Deutsche Bank is cooperating fully in response
to those subpoenas and requests for information.
Deutsche Bank has been named as defendant in numerous civil litigations in various roles as issuer or
underwriter in offerings of RMBS and other asset-backed securities. These cases include putative class
action suits, actions by individual purchasers of securities, actions by trustees on behalf of RMBS trusts,
and actions by insurance companies that guaranteed payments of principal and interest for particular
tranches of securities offerings. Although the allegations vary by lawsuit, these cases generally allege that
the RMBS offering documents contained material misrepresentations and omissions, including with regard
to the underwriting standards pursuant to which the underlying mortgage loans were issued, or assert that
various representations or warranties relating to the loans were breached at the time of origination.
Deutsche Bank is a defendant in putative class actions relating to its role, along with other financial
institutions, as underwriter of RMBS issued by IndyMac MBS, Inc. and Novastar Mortgage Corporation.
These cases are in discovery.
On December 18, 2013, the United States District Court for the Southern District of New York dismissed
the claims against Deutsche Bank in the putative class action relating to RMBS issued by Residential
Accredit Loans, Inc. and its affiliates.
On April 17, 2013, Bank of America announced that it had reached a settlement in principle to dismiss
various class action claims, which include the class action claims brought against underwriters, including
Deutsche Bank, relating to RMBS issued by Countrywide Financial Corporation. Following preliminary and
138
final fairness hearings, on December 17, 2013, the court entered a final judgment and order of dismissal
with prejudice. The settlement did not require any payment by unaffiliated underwriters, including Deutsche
Bank.
Deutsche Bank is a defendant in various non-class action lawsuits and arbitrations by alleged purchasers of,
and counterparties involved in transactions relating to, RMBS, and their affiliates, including Assured
Guaranty Municipal Corporation, Aozora Bank, Ltd., Bayerische Landesbank, Commerzbank AG, the Federal
Deposit Insurance Corporation (as conservator for Colonial Bank, Franklin Bank S.S.B., Guaranty Bank,
Citizens National Bank and Strategic Capital Bank), the Federal Home Loan Bank of Boston, the Federal
Home Loan Bank of San Francisco, the Federal Home Loan Bank of Seattle, the Federal Housing Finance
Agency (as conservator for Fannie Mae and Freddie Mac), HSBC Bank USA, National Association (as
trustee for certain RMBS trusts), John Hancock, Knights of Columbus, Landesbank Baden-Württemberg,
Mass Mutual Life Insurance Company, Moneygram Payment Systems, Inc., Phoenix Light SF Limited (as
purported assignee of claims of special purpose vehicles created and/or managed by WestLB AG), Royal
Park Investments (as purported assignee of claims of a special-purpose vehicle created to acquire certain
assets of Fortis Bank), Sealink Funding Ltd. (as purported assignee of claims of special purpose vehicles
created and/or managed by Sachsen Landesbank and its subsidiaries), Texas County & District Retirement
System, The Charles Schwab Corporation, Triaxx Prime CDO 2006-1 Ltd., Triaxx Prime CDO 2006-1 LLC,
Triaxx Prime CDO 2006-2 Ltd., Triaxx Prime CDO 2006-2 LLC, Triaxx Prime CDO 2007-1 Ltd. and Triaxx
Prime CDO 2007-1 LLC. These civil litigations and arbitrations are in various stages up through discovery.
In the actions against Deutsche Bank solely as an underwriter of other issuers’ RMBS offerings, Deutsche
Bank has contractual rights to indemnification from the issuers, but those indemnity rights may in whole or
in part prove effectively unenforceable where the issuers are now or may in the future be in bankruptcy or
otherwise defunct.
On December 20, 2013, Deutsche Bank announced that it reached an agreement to resolve certain
residential mortgage-backed securities litigation with the Federal Housing Finance Agency (FHFA) as
conservator for the Federal National Mortgage Association and the Federal Home Loan Mortgage
Corporation (the GSEs). As part of the agreement, Deutsche Bank paid € 1.4 billion. The settlement
included dismissal of claims brought against Deutsche Bank in the United States Federal Court for the
Southern District of New York relating to approximately U.S. $ 14.3 billion of RMBS purchased by the GSEs
that were issued, sponsored and/or underwritten by Deutsche Bank and an agreement to resolve claims
brought by or at the direction of the FHFA and/or the GSEs seeking the repurchase of mortgage loans
contained in RMBS purchased by the GSEs. The settlement did not resolve two matters brought by the
FHFA against Deutsche Bank as underwriter of RMBS issued by Countrywide Financial Corporation and
Société Générale and/or their affiliates. As underwriter, Deutsche Bank received a customary agreement of
indemnity from Countrywide Financial Corporation and Société Générale and/or their affiliates. On
February 27, 2014, the FHFA and Société Générale announced that they reached a settlement of the action
concerning RMBS issued by Société Générale. The settlement included a release of the claims asserted
against all defendants in that action, including Deutsche Bank. The settlement did not require any payment
by Deutsche Bank.
On February 6, 2012, the United States District Court for the Southern District of New York issued an order
dismissing claims brought by Dexia SA/NV and Teachers Insurance and Annuity Association of America and
their affiliates, and on January 4, 2013, the court issued an opinion explaining the basis for this order. The
court dismissed some of the claims with prejudice and granted the plaintiffs leave to replead other claims.
The plaintiffs repled the claims dismissed without prejudice by filing a new complaint on February 4, 2013.
On July 17, 2013, pursuant to the terms of separate settlement agreements, Dexia SA/NV and Teachers
Insurance and Annuity Association of America and their affiliates dismissed the lawsuits that had been filed
against Deutsche Bank. The financial terms of the settlements are not material to Deutsche Bank.
On July 16, 2012, the Minnesota District Court dismissed with prejudice without leave to replead claims by
Moneygram Payment Systems, Inc., which the plaintiffs have appealed. On January 13, 2013, Moneygram
filed a summons with notice in New York State Supreme Court seeking to assert claims similar to those
dismissed in Minnesota. On June 17, 2013, Moneygram filed an amended summons with notice and
complaint in New York State Supreme Court. On July 22, 2013, the Minnesota Court of Appeals affirmed
the dismissal of Deutsche Bank AG, but reversed the dismissal of Deutsche Bank Securities Inc. On
October 15, 2013, the Minnesota Supreme Court denied Deutsche Bank Securities Inc.’s petition for writ of
certiorari. Deutsche Bank has filed a petition for writ of certiorari to the United States Supreme Court.
Pursuant to terms of settlement agreements, litigations
Placement Investments Management Inc., Stichting
Management Board, The Union Central Life Insurance
Insurance Co. were dismissed. The financial terms of
Deutsche Bank.
filed by Allstate Insurance Company, Cambridge
Pensionfonds ABP, West Virginia Investment
Company and The Western and Southern Life
each of these settlements are not material to
139
Deutsche Bank has entered into agreements with certain entities that have threatened to assert claims
against Deutsche Bank in connection with various RMBS offerings and other related products to toll the
relevant statutes of limitations. It is possible that these potential claims may have a material impact on
Deutsche Bank. In addition, Deutsche Bank has entered into settlement agreements with some of these
entities, the financial terms of which are not material to Deutsche Bank.
Ocala Litigation
Deutsche Bank is a secured creditor of Ocala Funding LLC (“Ocala”), a commercial paper vehicle
sponsored by Taylor Bean & Whitaker Mortgage Corp. (“Taylor Bean”), which ceased mortgage lending
operations and filed for bankruptcy protection in August 2009. Bank of America is the trustee, collateral
agent, custodian and depository agent for Ocala. Deutsche Bank commenced a civil litigation in the United
States District Court for the Southern District of New York against Bank of America resulting from Bank of
America’s failure to secure and safeguard cash and mortgage loans that secured Deutsche Bank’s
commercial paper investment. This litigation is in discovery.
On December 29, 2011, Deutsche Bank commenced a civil litigation in Circuit Court of the 11th Judicial
Circuit in Miami Dade County, Florida for professional malpractice and negligent misrepresentation against
Deloitte & Touche LLP, the auditors of Taylor Bean’s financial statements, which were consolidated with
certain subsidiaries, including wholly owned subsidiary Ocala. On March 20, 2012, the court denied
Deloitte & Touche LLP’s motion to dismiss. This case has been settled to the mutual satisfaction of the
parties.
Parmalat Litigation
Following the bankruptcy of the Italian company Parmalat, prosecutors in Parma conducted a criminal
investigation against various bank employees, including employees of Deutsche Bank, and brought charges
of fraudulent bankruptcy against a number of Deutsche Bank employees and others. The trial commenced
in September 2009 and is ongoing.
Certain retail bondholders and shareholders have alleged civil liability against Deutsche Bank in connection
with the above-mentioned criminal proceedings. Deutsche Bank has made a formal settlement offer to
those retail investors who have asserted claims against Deutsche Bank. This offer has been accepted by
some of the retail investors. The outstanding claims will be heard during the criminal trial process.
In January 2011, a group of institutional investors (bondholders and shareholders) commenced a civil claim
for damages, in an aggregate amount of approximately € 130 million plus interest and costs, in the Milan
courts against various international and Italian banks, including Deutsche Bank and Deutsche Bank S.p.A.,
on allegations of cooperation with Parmalat in the fraudulent placement of securities and of deepening the
insolvency of Parmalat. Hearings on a preliminary application (made for preliminary matters, including
jurisdiction) brought by the defendant banks have taken place and the court has reserved judgment and
ordered the case to proceed on the merits. Deutsche Bank has petitioned the Italian Supreme Court for a
final assessment of the jurisdiction argument.
Sebastian Holdings Litigation
Deutsche Bank is in litigation in the United Kingdom and the United States with Sebastian Holdings Inc., a
Turks and Caicos company (“SHI”). The dispute arose in October 2008 when SHI accumulated trading
losses and subsequently failed to meet margin calls issued by Deutsche Bank.
The U.K. action was brought by Deutsche Bank to recover approximately U.S. $ 246 million owed by SHI
after the termination of two sets of master trading agreements with SHI. In the U.K. action against SHI, the
trial court (upheld by the Court of Appeal) held that it had jurisdiction over Deutsche Bank’s suit and
rejected SHI’s claim that the U.K. was an inconvenient forum for the case to be heard.
As a counterclaim against Deutsche Bank in the U.K., SHI duplicated aspects of the U.S. claim (described
below) in the U.K. proceedings. The amount of the U.K. pleaded counterclaim was not fully specified and
elements may have been duplicative, but the pleaded claim was for at least NOK 8.28 billion (around € 1.0
billion or U.S. $ 1.38 billion at recent exchange rates, which do not necessarily equate to the rates
applicable to the claim). Substantial consequential loss claims were pleaded in addition based primarily on
the profits which SHI claimed it would have made on the moneys allegedly lost. The total quantum of SHI’s
alleged losses remains unclear, but SHI’s expert has calculated losses claimed (including consequential
losses) as potentially amounting to NOK 44.1 billion (around U.S. $ 7.35 billion or € 5.33 billion at recent
exchange rates, which do not necessarily equate to the rates applicable to the claim) plus sums associated
with the currency in which damages are claimed (NOK) and interest. SHI also brought other claims including
for restitution and declaratory relief.
140
The trial in the English court began in April 2013 and judgment was handed down in November 2013. The
English court found SHI liable to Deutsche Bank for the amount of approximately U.S. $ 236 million, plus
interest, plus 85 % of costs, including an interim award of GBP 32 million, in respect of Deutsche Bank’s
claim and denied SHI’s counterclaims, holding that SHI was not entitled to any recovery. In December 2013
Deutsche Bank commenced action in the English court against Mr. Alexander Vik (SHI’s sole shareholder
and director) personally in respect of the GBP 32 million interim costs award.
On December 20, 2013, SHI filed an application for permission to appeal portions of the trial court judgment
with the Court of Appeal in England. The appeal relates to approximately U.S. $ 600 million of SHI’s original
claim, plus interest and possible FX costs. Permission will be decided at a hearing to take place not before
the third quarter of 2014, with the appeal hearing to follow immediately thereafter if permission is granted.
The U.S. action is a damages claim brought by SHI against Deutsche Bank in New York State court, arising
out of the same circumstances as Deutsche Bank’s suit against SHI in the U.K. and seeking damages of at
least U.S. $ 2.5 billion in an amended complaint filed January 10, 2011. The New York State Court has
granted Deutsche Bank’s motion to dismiss SHI’s tort claims, certain of its contract and quasi-contract
claims, and its claims for punitive damages, which ruling has been affirmed by the Appellate Division. No
trial date has been set.
In November and December 2013, Deutsche Bank commenced actions in New York and Connecticut
seeking to enforce the English judgment against SHI and Mr. Vik. In addition, Deutsche Bank brought
claims in New York against SHI, Mr. Vik, and other defendants, including Mr. Vik’s wife, Carrie Vik, and a
family trust, for fraudulent transfers that stripped SHI of assets in October 2008.
Trust Preferred Securities Litigation
Deutsche Bank and certain of its affiliates and officers were the subject of a consolidated putative class
action, filed in the United States District Court for the Southern District of New York, asserting claims under
the federal securities laws on behalf of persons who purchased certain trust preferred securities issued by
Deutsche Bank and its affiliates between October 2006 and May 2008. The court dismissed the plaintiffs’
second amended complaint with prejudice. Plaintiffs are appealing the dismissal to the United States Court
of Appeals for the Second Circuit.
U.S. Embargoes-Related Matters
Deutsche Bank has received requests for information from regulatory agencies concerning its historical
processing of U.S. dollar payment orders through U.S. financial institutions for parties from countries
subject to U.S. embargo laws and as to whether such processing complied with U.S. and state laws.
Deutsche Bank is cooperating with the regulatory agencies.
ZAO FC Eurokommerz
On December 17, 2013, the liquidator of ZAO FC Eurokommerz commenced proceedings in the Arbitrazh
Court of the City of Moscow against Deutsche Bank. The claim amounts to approximately € 210 million and
relates to the repayment of a RUB 6.25 billion bridge loan facility extended to ZAO FC Eurokommerz on
August 21, 2007. The bridge loan was repaid in full on December 21, 2007. ZAO FC Eurokommerz filed for
bankruptcy on July 31, 2009. The liquidator alleges, amongst other things, (i) that Deutsche Bank must have
known that ZAO FC Eurokommerz was in financial difficulties at the time of repayment and (ii) that the
bridge loan was repaid from the proceeds of a securitization transaction which was found to be invalid and
consequently the proceeds should not have been available to repay the bridge loan. The first instance
hearing on the merits of the claim has been postponed until October 22, 2014.
141
SELECTED BUSINESS AND FINANCIAL DATA
The following tables show selected business and financial data of Deutsche Bank Group as of and for the
three-month periods ended March 31, 2014 and 2013 and as of and for the fiscal years ended
December 31, 2013, 2012 and 2011.
The consolidated income statement data and cash flow statement data for the three-month period ended
March 31, 2014 (as well as the corresponding figures for the three-month period ended March 31, 2013)
and the consolidated balance sheet data as of March 31, 2014 were derived from Deutsche Bank’s
condensed consolidated interim financial statements as of and for the three-month period ended March 31,
2014 (with corresponding figures as of and for the three-month period ended March 31, 2013) prepared in
accordance with IFRS. The consolidated income statement data and cash flow statement data for the fiscal
years ended December 31, 2013, 2012 and 2011, as well as the consolidated balance sheet data as of
December 31, 2013 and 2012 were derived from Deutsche Bank’s consolidated financial statements for the
fiscal year ended December 31, 2013 (with corresponding figures for the preceding years) prepared in
accordance with IFRS. The consolidated balance sheet data as of December 31, 2011 has been derived
from Deutsche Bank’s consolidated financial statements as of and for the fiscal year 2012 (with
corresponding figures for 2011) prepared in accordance with IFRS. The condensed consolidated interim
financial statements as of and for the three-month period ended March 31, 2014 have been reviewed by
KPMG, and KPMG provided a review report. The consolidated financial statements for the fiscal years 2013,
2012 and 2011 have been audited by KPMG, and KPMG issued an unqualified auditor’s report in each case.
The information provided herein with respect to capital resources and capital ratios as of and for the threemonth period ended March 31, 2014 was derived from the notes to the condensed consolidated interim
financial statements as of and for the three-month period ended March 31, 2014, and the information with
respect to capital resources and capital ratios as of and for the fiscal years ended December 31, 2013, 2012
and 2011 was derived from the notes to the aforementioned audited consolidated financial statements
unless stated otherwise.
The following tables should be read in conjunction with the condensed consolidated interim financial
statements as of and for the three-month period ended March 31, 2014 and the consolidated financial
statements of Deutsche Bank as of and for the fiscal years ended December 31, 2013, 2012 and 2011. The
condensed consolidated interim financial statements as of and for the three-month period ended March 31,
2014 and the consolidated financial statements as of and for the fiscal year ended December 31, 2013 are
contained in the section “Financial Statements” of this Prospectus. The consolidated financial statements
as of and for the fiscal years ended December 31, 2012 and 2011 are incorporated by reference into this
Prospectus, see “General Information—Documents Incorporated by Reference”.
142
Consolidated Statement of Income Data
in € m. (except per share data)
Interest and similar income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net interest income after provision for credit losses . . . . . .
Commissions and fee income . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net gains (losses) on financial assets/liabilities at fair value
through profit or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net gains (losses) on financial assets available for sale . . . . . . .
Net income (loss) from equity method investments . . . . . . . . .
Other income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total noninterest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Compensation and benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative expenses . . . . . . . . . . . . . . . . . . . . .
Policyholder benefits and claims . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . .
Restructuring activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income (loss) before income taxes . . . . . . . . . . . . . . . . . . . . . .
Income tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net income (loss) attributable to noncontrolling interests . . . . .
shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Basic earnings per share (in €)(1) . . . . . . . . . . . . . . . . . . . . . . . . . .
Diluted earnings per share (in €)(2) . . . . . . . . . . . . . . . . . . . . . . . .
1
2
Three months
ended
March 31,
2014 2013
(reviewed)
6,246 6,594
2,871 2,944
3,375 3,650
246
354
3,129 3,296
3,038 2,995
2013
2012
2011
(audited)
25,601 31,593 34,366
10,768 15,619 16,921
14,834 15,975 17,445
2,065
1,721
1,839
12,769 14,254 15,606
12,308 11,809 11,878
1,616
73
154
136
5,018
3,349
3,010
52
0
56
6,466
1,680
577
1,103
20
2,697
110
36
(97)
5,741
3,548
2,818
192
0
65
6,623
2,414
753
1,661
10
3,817
394
369
193
17,082
12,329
15,126
460
79
399
28,394
1,456
775
681
15
5,608
301
163
(120)
17,761
13,490
15,017
414
1,886
394
31,201
814
498
316
53
2,724
123
(264)
1,322
15,783
13,135
12,657
207
0
0
25,999
5,390
1,064
4,326
194
1,083
1.06
1.03
1,651
1.76
1.71
666
0.67
0.65
263
0.28
0.27
4,132
4.45
4.30
The Company calculated basic earnings per share for each period by dividing the Group’s net income (loss) attributable to
Deutsche Bank shareholders by the average number of common shares outstanding. The average number of common
shares outstanding is defined as the average number of common shares issued, reduced by the average number of shares
in treasury and by the average number of shares that will be acquired under physically-settled forward purchase contracts,
and increased by undistributed vested shares awarded under deferred share plans.
The Company calculated diluted earnings per share for each period by dividing the Group’s net income (loss) attributable to
Deutsche Bank shareholders by the average number of common shares outstanding, both after assumed conversion into
common shares of outstanding securities or other contracts to issue common stock, such as share options, convertible
debt, unvested deferred share awards and forward contracts. The aforementioned instruments are only included in the
calculation of diluted earnings per share if they are dilutive in the respective reporting period. The average number of
common shares outstanding is defined as the average number of common shares issued, reduced by the average number
of shares in treasury and by the average number of shares that will be acquired under physically-settled forward purchase
contracts, and increased by undistributed vested shares awarded under deferred share plans.
143
Consolidated Balance Sheet Data
in € m.
March 31,
2014
(reviewed)
Assets:
Cash and due from banks . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest-earning deposits with banks . . . . . . . . . . . . . . . . . .
Central bank funds sold and securities purchased under
resale agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities borrowed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total financial assets at fair value through profit or loss . .
Financial assets available for sale . . . . . . . . . . . . . . . . . . . . .
Equity method investments . . . . . . . . . . . . . . . . . . . . . . . . .
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Property and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Goodwill and other intangible assets . . . . . . . . . . . . . . . . . .
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income tax assets(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Liabilities and equity:
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Central bank funds purchased and securities sold under
repurchase agreements . . . . . . . . . . . . . . . . . . . . . . . . . .
Securities loaned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total financial liabilities at fair value through profit or
loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . .
Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income tax liabilities(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Trust preferred securities . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common shares, no par value, nominal value of € 2.56 . .
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Common shares in treasury, at cost . . . . . . . . . . . . . . . . . .
Accumulated other comprehensive income (loss), net of
tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities and equity . . . . . . . . . . . . . . . . . . . . . . . . .
1
December 31,
2012
(audited)
2013
2011
16,433
73,693
17,155
77,984
27,877
120,637
15,928
162,000
26,514
26,697
862,219
51,204
3,675
380,954
4,318
13,951
168,189
8,727
1,636,574
27,363
20,870
899,257
48,326
3,581
376,582
4,420
13,932
112,539
9,393
1,611,400
36,570
24,013
1,209,839
49,400
3,577
397,377
4,963
14,219
123,702
10,101
2,022,275
25,773
31,337
1,280,799
45,281
3,759
412,514
5,509
15,802
154,794
10,607
2,164,103
516,565
527,750
577,210
601,730
12,815
3,432
13,381
2,304
36,144
3,166
35,311
8,089
630,628
55,175
211,598
4,614
2,589
132,895
10,249
1,580,557
2,610
25,993
29,574
(9)
637,404
59,767
163,595
4,524
2,701
133,082
11,926
1,556,434
2,610
26,204
28,376
(13)
925,193
69,661
179,099
5,110
3,036
157,325
12,091
1,968,035
2,380
23,776
29,199
(60)
1,028,447
65,356
187,816
2,621
4,313
163,416
12,344
2,109,443
2,380
23,695
30,119
(823)
(2,415)
55,753
264
56,017
1,636,574
(2,457)
54,719
247
54,966
1,611,400
(1,294)
54,001
239
54,240
2,022,275
(1,981)
53,390
1,270
54,660
2,164,103
Income tax assets and Income tax liabilities comprise both deferred and current taxes.
Consolidated Cashflow Statement Data
in € m.
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income (loss) adjusted for non-cash charges, credits and
other items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by (used in) operating activities . . . . . . . . .
Net cash provided by (used in) investing activities . . . . . . . . .
Net cash provided by (used in) financing activities . . . . . . . . .
Net effect of exchange rate changes on cash and cash
equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents (total) . . . . . . . . . . . . . . . . . . . .
144
Three months
ended
March 31,
2014
2013
(reviewed)
1,103
1,661
Year ended
December 31,
2013
2012
2011
(audited)
681
316
4,326
2,190
3,828
(2,634)
(3,281)
3,095
7,756
(1,329)
(1,866)
4,483
7,184
(3,015)
(544)
5,365
(23,954)
(2,647)
(2,152)
8,412
7,802
11,915
(3,160)
110
46,406
(284)
57,598
(907)
56,041
39
53,321
(964)
81,946
Certain Key Ratios and Figures of the Group
Book value per basic share outstanding(1)(2) . . . . . . . . . . . . . .
Tangible book value per basic share outstanding(1)(3) . . . . . . .
Pre-tax return on average shareholders’ equity(1)(4) . . . . . . . .
Pre-tax return on average active equity(5) . . . . . . . . . . . . . . . .
Post-tax return on average shareholders’ equity(1)(6) . . . . . . .
Post-tax return on average active equity(7) . . . . . . . . . . . . . . .
Cost/income ratio(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Compensation ratio(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncompensation ratio(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tier 1 capital ratio at period-end(1)(11) . . . . . . . . . . . . . . . . . . . .
Common Equity Tier 1 capital ratio at period-end(1)(11) . . . . . .
Three months
ended
March 31,
2014
(reviewed,
unless stated
otherwise)
€ 54.31
€ 40.72
12.0%
12.2%
7.8%
7.9%
77.0%
39.9%
37.1%
13.2%
13.2%
Year ended
December 31,
2013
2012
2011
(audited, unless stated
otherwise)
€ 53.24 € 57.37 € 58.11
€ 39.69 € 42.26 € 40.91
2.6%
1.3%
10.2%
2.6%
1.4%
10.3%
1.2%
0.5%
8.2%
1.2%
0.5%
8.2%
89.0%
92.5%
78.2%
38.6%
40.0%
39.5%
50.3%
52.5%
38.7%
16.9%
15.1%
12.9%
12.8%
11.4%
9.5%
1 Unaudited.
2 Shareholders’ equity divided by the number of basic shares outstanding (both at period-end).
3 Shareholders’ equity less goodwill and other intangible assets, divided by the number of basic shares outstanding (both at
period-end).
4 Income before income taxes attributable to the Company’s shareholders as a percentage of average shareholders’ equity.
5 Income before income taxes attributable to the Company’s shareholders as a percentage of average active equity. The
Company calculates this adjusted measure of its return on average shareholders’ equity to make it easier to compare the
Company to its competitors. The Company refers to this adjusted measure as the Company’s “Pre-tax return on average
active equity”. However, this is not a measure of performance under IFRS and the Company’s ratio based on average active
equity should not be compared to other companies’ ratios without considering the differences in the calculation of the ratio.
The items for which the Company adjusts the average shareholders’ equity of € 56.1 billion for 2013, € 55.6 billion for 2012
and € 50.5 billion for 2011, are average dividends of € 646 million in 2013, € 670 million in 2012 and € 617 million in 2011,
for which a proposal is accrued on a quarterly basis and which are paid after the approval by the annual general meeting
following each year. In 2011 the average shareholders’ equity was also adjusted for average accumulated other
comprehensive income excluding foreign currency translation (all components net of applicable tax) of € (519) million.
6 Net income attributable to the Company’s shareholders as a percentage of average shareholders’ equity.
7 Net income attributable to the Company’s shareholders as a percentage of average active equity.
8 Total noninterest expenses as a percentage of net interest income before provision for credit losses, plus noninterest
income.
9 Compensation and benefits as a percentage of net interest income before provision for credit losses, plus noninterest
income.
10 Noncompensation noninterest expenses, which is defined as total noninterest expenses less compensation and benefits, as
a percentage of net interest income before provision for credit losses, plus noninterest income.
11 Ratios presented for March 31, 2014 are based upon transitional rules of the CRR/CRD 4 capital framework. Ratios for
December 31, 2013, 2012 and 2011 are based on the amended capital requirements for trading book and securitization
positions following the Capital Requirements Directive 3, also known as “Basel 2.5”, as implemented in the German
Banking Act and the Solvency Regulation excluding transitional items pursuant to Section 64h (3) of the German Banking
Act. The capital ratios relate the respective capital to risk-weighted assets for credit, market and operational risk.
Deutsche Bank AG Share Information
in € per share
Share price (XETRA):
Share price at the end of the reporting period . . . . . . . . . . . . . . . . . .
Share price high during the reporting period . . . . . . . . . . . . . . . . . . .
Share price low during the reporting period . . . . . . . . . . . . . . . . . . . .
Three months
ended
March 31,
2014
32.48
40.00
30.76
Year ended
December 31,
2013 2012 2011
34.68
38.73
29.41
32.95
39.51
22.11
29.44
48.70
20.79
145
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of Deutsche Bank’s financial condition and results of operations
should be read in particular in conjunction with the sections “Risk Factors” and “Business” of this
Prospectus, Deutsche Bank’s condensed consolidated interim financial statements as of and for the three
months ended March 31, 2014 and Deutsche Bank’s consolidated financial statements as of and for the
fiscal years ended December 31, 2013, 2012 and 2011 and the notes thereto, and the other financial
information contained in this Prospectus.
The condensed consolidated interim financial statements of Deutsche Bank as of and for the three months
ended March 31, 2014 were prepared in accordance with IFRS and reviewed by KPMG. The consolidated
financial statements of Deutsche Bank as of and for the fiscal years ended December 31, 2013, 2012 and
2011 were prepared in accordance with IFRS and audited by KPMG. The non-consolidated financial
statements of the Company as of and for the fiscal year ended December 31, 2013 were prepared in
accordance with the German Commercial Code (HGB) and audited by KPMG. The condensed consolidated
interim financial statements of the Group as of and for the three months ended March 31, 2014 are
contained in the section “Financial Statements” of this Prospectus. The non-consolidated financial
statements of the Company as of and for the fiscal year ended December 31, 2013 and the consolidated
financial statements of the Group as of and for the fiscal years ended December 31, 2013 are contained in
the section “Financial Statements” of this Prospectus. The consolidated financial statements of the Group
as of and for the fiscal years ended December 31, 2012 and 2011 are incorporated by reference into this
Prospectus; see “General Information—Documents Incorporated by Reference”.
Significant Accounting Policies and Critical Accounting Estimates
Deutsche Bank’s significant accounting policies are essential to understanding its reported results of
operations and financial condition. Certain of these accounting policies require critical accounting estimates
that involve complex and subjective judgments and the use of assumptions, some of which may be for
matters that are inherently uncertain and susceptible to change. Such critical accounting estimates could
change from period to period and may have a material impact on the financial condition, changes in financial
condition or results of operations. Critical accounting estimates could also involve estimates where
management could have reasonably used another estimate in the relevant accounting period. Actual results
could differ from management’s estimates. See the section “Basis of Preparation (unaudited)” in the notes
to Deutsche Bank’s condensed consolidated interim financial statements as of and for the three months
ended March 31, 2014 and Note 1 to the consolidated financial statements of Deutsche Bank as of and for
the fiscal year ended December 31, 2013, both of which are contained in the section “Financial
Statements” of this Prospectus, for a discussion on Deutsche Bank’s significant accounting policies and
critical accounting estimates.
The Deutsche Bank Group has identified the following significant accounting policies that involve critical
accounting estimates:
• the impairment of associates
• the impairment of financial assets available for sale
• the determination of fair value
• the recognition of trade date profit
• the impairment of loans and provisions for off-balance sheet positions
• the impairment of goodwill and other intangibles
• the recognition and measurement of deferred tax assets
• the accounting for legal and regulatory contingencies and uncertain tax positions
Recently Adopted Accounting Pronouncements and New Accounting Pronouncements
For a discussion of Deutsche Bank’s recently adopted and new accounting pronouncements, see the
section “Impact of Changes in Accounting Principles (unaudited)” in the notes to Deutsche Bank’s
condensed consolidated interim financial statements as of and for the three months ended March 31, 2014
and Note 2 to the consolidated financial statements of Deutsche Bank as of and for the fiscal year ended
December 31, 2013, both of which are contained in the section “Financial Statements” of this Prospectus.
146
Results of Operations
Overview
The following tables present an overview on Deutsche Bank Group’s condensed consolidated statement of
income for the three-month periods ended March 31, 2014 and 2013, and the fiscal years ended
December 31, 2013, 2012 and 2011:
(reviewed)
in € m.
Interest and similar income . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net Interest Income . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . .
losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commissions and fee income . . . . . . . . . . . . . . . . . . .
Net gains (losses) on financial assets/liabilities at fair
value through profit or loss . . . . . . . . . . . . . . . . . . . .
Net gains (losses) on financial assets available for
sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total noninterest income . . . . . . . . . . . . . . . . . . . . . .
Compensation and benefits . . . . . . . . . . . . . . . . . . . . .
General and administrative expenses . . . . . . . . . . . . .
Policyholder benefits and claims . . . . . . . . . . . . . . . . .
Impairment of intangible assets . . . . . . . . . . . . . . . . . .
Restructuring activities . . . . . . . . . . . . . . . . . . . . . . . . .
Total noninterest expenses . . . . . . . . . . . . . . . . . . . .
Income (loss) before income taxes . . . . . . . . . . . . . .
Income tax expenses (benefit) . . . . . . . . . . . . . . . . . . .
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Three months
ended
March 31,
2014
2013
6,246
6,594
2,871
2,944
3,375
3,650
Change in
first three months 2014 to
first three months 2013
in € m.
in %
(348)
(5)
(73)
(2)
(275)
(8)
246
354
(108)
(30)
3,129
3,038
3,296
2,995
(167)
43
(5)
1
1,616
2,697
(1,081)
(40)
73
110
(37)
(34)
154
136
5,018
3,349
3,010
52
0
56
6,466
1,680
577
1,103
36
(97)
5,741
3,548
2,818
192
0
65
6,623
2,414
753
1,661
118
233
(724)
(200)
192
(140)
0
(8)
(157)
(734)
(177)
(558)
N/M
N/M
(13)
(6)
7
(73)
N/M
(13)
(2)
(30)
(23)
(34)
20
10
11
110
1,083
1,651
(568)
(34)
147
(audited)
in € m.
Net interest income . . . . . . . . . . . . . . . .
Provision for credit losses . . . . . . . . . . .
Net interest income after provision
for credit losses . . . . . . . . . . . . . . . .
Commissions and fee income(1) . . . . . .
Net gains (losses) on financial assets/
liabilities at fair value through profit
or loss . . . . . . . . . . . . . . . . . . . . . . . . .
Net gains (losses) on financial assets
available for sale . . . . . . . . . . . . . . . . .
investments . . . . . . . . . . . . . . . . . . . .
Other income (loss) . . . . . . . . . . . . . . . .
Total noninterest income . . . . . . . . . .
Total net revenues(2) . . . . . . . . . . . . . .
Compensation and benefits . . . . . . . . .
General and administrative
expenses . . . . . . . . . . . . . . . . . . . . . .
Policyholder benefits and claims . . . . .
Impairment of intangible assets . . . . . .
Restructuring activities . . . . . . . . . . . . .
Total noninterest expenses . . . . . . . .
Income (loss) before income
taxes . . . . . . . . . . . . . . . . . . . . . . . . . .
Income tax expense (benefit) . . . . . . . .
Net income (loss) . . . . . . . . . . . . . . . . .
Net income (loss) attributable to
noncontrolling interests(2) . . . . . . . . .
Net income (loss) attributable to
Deutsche Bank shareholders . . . . . .
Change in
fiscal year 2013 to
fiscal year 2012
Change in
fiscal year 2012 to
fiscal year 2011
2013 2012 2011
14,834 15,975 17,445
2,065 1,721 1,839
in € m.
(1,141)
344
(7)
20
in € m.
(1,470)
(118)
12,769 14,254 15,606
12,308 11,809 11,878
(1,485)
500
(10)
4
(1,352)
(69)
(9)
(1)
Year ended
December 31,
in %
in %
(8)
(6)
3,817
5,608
2,724
(1,791)
(32)
2,884
106
394
301
123
93
31
178
145
369
163 (264)
193 (120) 1,322
17,082 17,761 15,783
29,850 32,015 31,389
12,329 13,490 13,135
206
313
(679)
(2,164)
(1,160)
127
N/M
(4)
(7)
(9)
427
(1,442)
1,978
626
355
N/M
N/M
13
2
3
15,126 15,017 12,657
460
414
207
79 1,886
0
399
394
0
28,394 31,201 25,999
110
46
(1,808)
5
(2,807)
1
11
(96)
1
(9)
2,360
207
1,886
394
5,202
19
100
N/M
N/M
20
1,456
775
681
814
498
316
5,390
1,064
4,326
642
277
365
79
56
116
4,576
(566)
(4,010)
(85)
(53)
(93)
15
53
194
(37)
(71)
(141)
(73)
666
263
4,132
403
154
(3,869)
(94)
1 2012 and 2011 periods have been restated. For further detail please refer to Note 1 “Significant Accounting Policies and
Critical Accounting Estimates” to the consolidated financial statements of Deutsche Bank as of and for the fiscal year ended
December 31, 2013, which are contained in the section “Financial Statements” of this Prospectus.
2 After provision for credit losses.
Comparison of the Three-month Periods ended March 31, 2014 and 2013
The following discussion and analysis must be read in conjunction with Deutsche Bank’s condensed
consolidated interim financial statements as of March 31, 2014, which are included in the section “Financial
Overview
Economic Environment
In the first quarter of 2014, global economic growth likely slowed somewhat due to a weakening of
economic momentum in emerging markets and developing countries. In contrast, Deutsche Bank
estimates that the upturn in economic growth in industrialized countries continued at roughly the same rate
as in the last quarter of 2013, when the seven largest industrial countries grew by an annualized rate of
2 %.
The eurozone economy continued to see a moderate recovery in the first quarter of 2014, reflecting a
fourth consecutive quarter of positive growth following six quarters of contraction in which the eurozone
economy shrank by nearly 1.5 %. The German economy gained significant momentum in the first quarter of
2014, partly due to the positive effects of mild weather. While economic growth in the United States and
Canada was probably marked lower in the first quarter of 2014 due to adverse weather conditions,
economic momentum picked up noticeably in Japan and the United Kingdom in particular. In Japan, this
was most likely due to purchases having been brought forward in anticipation of the increase in value added
tax that came into effect in April 2014.
148
In contrast, the assessments of purchasing managers in China, which were noticeably more pessimistic in
the first three months of 2014 than on average in the final quarter of 2013, signaled a weakening of the
economy. For Russia, such assessments even point to a reduction in economic activity there.
For the banking industry, the financial markets in Europe were characterized by relative calmness in the first
quarter of 2014, despite temporary tensions due to the crisis in Ukraine. The lending business with both
corporate and private clients saw a continuation of the slightly negative trend of the 2012 and 2013 years.
The moderate growth in deposits was maintained, but it was somewhat weaker than before. In view of the
general reduction in total assets and the increase in deposit refinancing, the volumes of capital market
issues by banks rose compared to the exceptionally weak 2013 year. However, despite low financing costs,
these volumes still remained well below the historical average.
In the United States, credit growth accelerated in the first quarter of 2014, in line with the recovery of the
economy as a whole, especially in the corporate clients business, which regained a strong momentum. The
private mortgage business also seems to have stabilized at a low level. Deposit growth remained strong,
with volumes increasing more or less linearly.
In global investment banking, the first quarter of 2014 was shaped by moderate client demand and activity.
Net revenues in corporate finance in the United States and Asia were on par with the 2013 year overall,
with moderate declines in the United States from a high value in 2013. These effects were balanced out by
a strong improvement in Europe, in contrast to a weak first quarter of 2013 there. The equities business
grew significantly, especially for IPOs. In contrast, the fixed income business contracted just as
significantly, mainly in higher-margin segments. Slight increases were registered in merger and acquisition
activity as well as with syndicated loans. Debt trading volumes fell considerably, while trading in equity
instruments rose in comparison to the first quarter of 2013.
In asset and wealth management, revenues in the first quarter of 2014 are likely to have developed
positively due to stable equities markets on record highs and solid bond markets in many industrialized
countries, as well as the growing expectations of investors that the economic recovery will continue.
At the beginning of 2014, the key regulatory and supervisory issues in the EU were the publication of a
draft regulation on the implementation of structural banking reforms by the European Commission, the
general political agreement on the structure of the Single Resolution Mechanism within the Banking Union,
and the final agreement on the details of Markets in Financial Instruments Directive II. In the United States,
the key regulatory and supervisory issues included, in particular, the annual balance-sheet stress test by the
Fed and the final decision on the new capital and liquidity requirements for foreign banks. Basel 3 officially
came into effect in both regions (in the United States at the time, only for particularly large banks), with
implementation periods lasting several years. The Basel Committee published final rules for calculating the
liquidity coverage ratio and the leverage ratio which may possibly become applicable in both Europe and the
United States.
Ongoing legal disputes, regulatory investigations and related settlement payments continued to be a
burden for the banking sector.
Deutsche Bank Performance
In 2014, Deutsche Bank continued to invest in its future growth and in further strengthening its controls
while addressing ongoing legal and regulatory issues. Deutsche Bank expects 2014 to be a year of further
challenges and disciplined implementation.
The key financial highlights for the Group in the period can be summarized as:
• Group net revenues of € 8.4 billion in first quarter 2014, down 11 % versus first quarter 2013 largely
reflecting revenue declines in CB&S;
• Income before income taxes of € 1.7 billion, down 30 % from first quarter 2013;
• Net income decreased from € 1.7 billion in first quarter 2013 to € 1.1 billion in first quarter 2014;
• CRR/CRD 4 fully loaded Common Equity Tier 1 capital ratio was 9.5 % at the end of first quarter 2014;
• Adjusted CRR/CRD 4 leverage ratio was 3.2 % at the end of first quarter 2014;
• CRR/CRD 4 fully loaded risk-weighted assets of € 373 billion as of March 31, 2014.
149
The financial Key Performance Indicators (KPIs) of the Group are detailed in the table below:
Post-tax return on average active equity . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost/income ratio(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost savings(4)(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Costs to achieve savings(5)(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CRR/CRD 4 pro forma fully loaded Common Equity Tier 1 ratio(5)(7) . . . .
Adjusted CRR/CRD 4 leverage ratio(5)(8) . . . . . . . . . . . . . . . . . . . . . . . . . . .
March 31, 2014 March 31, 2013
(reviewed, unless stated
otherwise)
7.9%(1)
12.3%(2)
77.0%(1)
70.5%(2)
(1)
€2.3 bn
€0.6 bn(2)
€2.1 bn(1)
€0.7 bn(2)
9.5%
8.8%
3.2%
N/A
1 For the three-month period ended March 31, 2014
2 For the three-month period ended March 31, 2013
3 Total noninterest expenses as a percentage of total net interest income before provision for credit losses plus noninterest
income.
5 Unaudited.
6 Cost-to-achieve directly required for the realization of savings in the OpEx Program.
7 The CRR/CRD 4 pro forma fully loaded Common Equity Tier 1 ratio represents Deutsche Bank’s calculation of its Common
Equity Tier 1 ratio without taking into account the phase in provisions of CRR/CRD 4. Further detail on the calculation of this
ratio is detailed under the heading “Risk Management—Regulatory Capital—Pro forma CRR/CRD 4 Solvency Measures”.
8 The adjusted CRR/CRD 4 leverage ratio represents Deutsche Bank’s calculation following the publication of CRR/CRD 4 on
June 27, 2013 as amended. Further detail on the calculation of this ratio is detailed under the heading “Risk Management—
Balance Sheet Management—Leverage Ratio according to CRR/CRD 4 (unaudited)”.
The following table presents the condensed consolidated statement of income of Deutsche Bank Group for
the three-month periods ended March 31, 2014 and 2013 on the basis of Deutsche Bank’s consolidated
interim financial statements for the three months ended March 31, 2014.
(reviewed)
in € m.
Interest and similar income . . . . . . . . . . . . . . . . . . . . . .
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net Interest Income . . . . . . . . . . . . . . . . . . . . . . . . . . .
losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commissions and fee income . . . . . . . . . . . . . . . . . . .
Net gains (losses) on financial assets/liabilities at fair
value through profit or loss . . . . . . . . . . . . . . . . . . . .
Net gains (losses) on financial assets available for
sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total noninterest income . . . . . . . . . . . . . . . . . . . . . .
Compensation and benefits . . . . . . . . . . . . . . . . . . . . .
General and administrative expenses . . . . . . . . . . . . .
Policyholder benefits and claims . . . . . . . . . . . . . . . . .
Impairment of intangible assets . . . . . . . . . . . . . . . . . .
Restructuring activities . . . . . . . . . . . . . . . . . . . . . . . . .
Income tax expenses (benefit) . . . . . . . . . . . . . . . . . . .
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
150
Three months
ended
March 31,
2014
2013
6,246
6,594
2,871
2,944
3,375
3,650
Change in
in € m.
in %
(348)
(5)
(73)
(2)
(275)
(8)
246
354
(108)
(30)
3,129
3,038
3,296
2,995
(167)
43
(5)
1
1,616
2,697
(1,081)
(40)
73
110
(37)
(34)
154
136
5,018
3,349
3,010
52
0
56
6,466
1,680
577
1,103
36
(97)
5,741
3,548
2,818
192
0
65
6,623
2,414
753
1,661
118
233
(724)
(200)
192
(140)
0
(8)
(157)
(734)
(177)
(558)
N/M
N/M
(13)
(6)
7
(73)
N/M
(13)
(2)
(30)
(23)
(34)
20
10
11
110
1,083
1,651
(568)
(34)
Results of Operations of the Group
(reviewed)
in € m.
Net revenues:
Thereof:
CB&S(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PBC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GTB . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DeAWM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NCOU(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision for credit losses . . . . . . . . . . . . . . . . . . . . .
Noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . .
Income before income taxes . . . . . . . . . . . . . . . . . . .
Income tax expense (benefit) . . . . . . . . . . . . . . . . . . . .
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
Three months
ended
March 31,
2014
2013
4,076
2,476
1,028
1,067
74
8,392
246
6,466
1,680
577
1,103
4,547
2,385
1,034
1,244
441
9,391
354
6,623
2,414
753
1,661
Change in
in € m.
in %
(471)
91
(6)
(177)
(367)
(999)
(108)
(157)
(734)
(177)
(558)
(10)
4
(1)
(14)
(83)
(11)
(30)
(2)
(30)
(23)
(34)
In the first quarter of 2014, the Special Commodities Group was transferred from CB&S to NCOU. Prior year figures have
been restated.
Results in the first quarter of 2014 reflect a mixed performance with a reduced year-on-year revenue
contribution from Corporate Banking & Securities (CB&S), Deutsche Asset & Wealth Management
(DeAWM), and Deutsche Bank’s Non-Core Operating Unit (NCOU) with substantially unchanged results
across Global Transaction Banking (GTB) and slightly higher revenues in Private & Business Clients (PBC).
Lower client investment activity exacerbated by uncertainty around emerging markets as well as continued
low interest rates and a highly competitive environment are reflected in decreased revenues across most
businesses. Deutsche Bank made further progress in its Operational Excellence (OpEx) Program, which
focuses in 2014 on more complex initiatives. Cost reductions from the ongoing implementation of OpEx
allowed Deutsche Bank to counterbalance higher cost caused by increasing regulatory requirements, and
enabled it to continue to invest in platform improvements.
Deutsche Bank’s net revenues in the first quarter of 2014 decreased by 11 %, or € 999 million, to
€ 8.4 billion compared to € 9.4 billion in the first quarter of 2013. In CB&S, revenues were € 4.1 billion, down
€ 471 million, or 10 %, versus the first quarter of 2013. The decrease was mainly attributable to reduced
revenues in Sales & Trading (debt and other products), which were down by € 285 million, or 10 %,
compared to the first quarter of 2013, resulting from lower client activity reflecting low volatility and ongoing
uncertainty around emerging markets. In addition, revenues in CB&S decreased due to losses from Debt
Valuation Adjustment (DVA) in the first quarter of 2014, whereas a gain for DVA was recorded in the first
quarter of 2013. PBC revenues were € 2.5 billion in the first quarter of 2014, up € 91 million, or 4 %,
compared to the first quarter of 2013. The increase was primarily driven by subsequent gains related to a
business sale closed in a period prior to the first quarter of 2014, but also due to higher revenues in
investment and insurance products. Revenues in GTB were € 1.0 billion, marginally down by € 6 million, or
1 %, from the first quarter of 2013, impacted by a highly competitive environment and continued low
interest rates. DeAWM revenues decreased by € 177 million, or 14 %, to € 1.1 billion, versus the first
quarter of 2013, mainly driven by mark-to-market movements on policyholder positions in Abbey Life, largely
offset in noninterest expenses. Revenues in the NCOU were € 74 million, a decrease by € 367 million, or
83 %, in the first quarter of 2014, reflecting a reduction of assets following Deutsche Bank’s de-risking
activities and losses incurred by the Special Commodities Group (SCG), primarily driven by losses on
Deutsche Bank’s exposure to traded products in the U.S. power sector. Consolidation & Adjustments (C&A)
net revenues declined from negative € 259 million in the first quarter of 2013 to negative € 327 million in the
first quarter of 2014. This development was predominantly attributable to valuation and timing differences
from different accounting methods used for management reporting and IFRS as well as negative impacts
from funding valuation adjustments on internal uncollateralized derivatives.
Provision for credit losses was € 246 million in the first quarter of 2014, a decrease of € 108 million, or 30 %,
compared to the first quarter of 2013. This reduction primarily reflects the non-recurrence of a number of
large single items in GTB, CB&S and NCOU recorded in the first quarter of 2013. The provision for credit
losses increase in PBC was driven by a positive one-off effect from portfolio sales in the first quarter of 2013
that was not replicated in the first quarter of 2014. After adjusting for this one-off effect, the provision for
credit losses in PBC decreased, reflecting the ongoing strong credit environment in Germany.
151
Noninterest expenses were € 6.5 billion in the first quarter of 2014, down € 157 million, or 2 %, compared
to the first quarter of 2013. Compensation and benefits, which amounted to € 3.3 billion, were down
€ 200 million, or 6 %, compared to the first quarter of 2013. This primarily reflects lower variable
compensation, including reduced deferred award amortisation, mainly in CB&S. General and administrative
expenses were € 3.0 billion, up € 192 million, or 7 %, compared to the first quarter of 2013. One driver for
the increase was cost-to-achieve related to OpEx, which was € 301 million in the first quarter of 2014
versus € 219 million in the first quarter of 2013. Other drivers were higher expenses relating to increased
regulatory requirements, higher investments in platforms, as well as an impairment in NCOU. In part, these
costs were offset by lower litigation related charges and the ongoing positive impact from the OpEx
Program. Policyholder benefits and claims, which are offsetting mark-to-market movements on investments
held to back insurance policyholder claims in Abbey Life, were € 52 million in the first quarter of 2014, a
reduction of € 141 million, compared to the first quarter of 2013.
Overall, income before income taxes was € 1.7 billion in the first quarter of 2014 versus € 2.4 billion in the
first quarter of 2013, mainly driven by lower revenues which were partly offset by costs reductions.
Net income for the first quarter of 2014 was € 1.1 billion, compared to € 1.7 billion in the first quarter of
2013. Income tax expense in the first quarter of 2014 was € 577 million versus € 753 million in the first
quarter of 2013. The effective tax rate in the first quarter of 2014 was 34 %, versus 31 % in the first quarter
of 2013.
Results of Operations by Segment
The following is a discussion of the results of Deutsche Bank’s business segments. Deutsche Bank’s
segment reporting for the first three months of 2014 follows the organizational structure as reflected in its
internal management reporting systems in effect on March 31, 2014. Generally, restatements due to minor
changes in the organizational structure were implemented in the presentation of prior period comparables if
they were considered in Deutsche Bank’s management reporting systems. For further information on
changes in the organizational structure which affected the composition of the business segments during
the first quarter of 2014, as well as the segment reporting and the measurement of segment profit or loss,
see the section “Segment Information” in the notes to the condensed consolidated interim financial
statements of Deutsche Bank as of and for the three-month period ended March 31, 2014, which are
included in the “Financial Statements” section of this Prospectus.
The following tables present the results of the business segments, including the reconciliation to the
consolidated results under IFRS, for the three months ended March 31, 2014 and March 31, 2013.
(reviewed)
in € m.
Net revenues . . . . . . . . . . . . . .
Provision for credit losses . .
Total noninterest
expenses . . . . . . . . . . . . . . .
thereof:
Policyholder benefits and
claims . . . . . . . . . . . . . . . .
Impairment of intangible
assets . . . . . . . . . . . . . . . .
Restructuring activities . . . .
Noncontrolling interests . . .
Income (loss) before income
taxes . . . . . . . . . . . . . . . . . . .
Cost/income ratio . . . . . . . . . . .
Assets(1) . . . . . . . . . . . . . . . . . .
Risk-weighted assets (CRR/
CRD 4 fully loaded) . . . . . . .
Average active equity . . . . . . .
Pre-tax return on average
active equity . . . . . . . . . . . . .
Post-tax return on average
active equity(2) . . . . . . . . . . . .
Three months ended March 31, 2014
Deutsche
Corporate Private &
Global
Asset &
Non-Core
ConsoliBanking & Business Transaction
Wealth
Operations dations &
Total
Securities Clients
Banking Management
Unit
Adjustments Consolidated
4,076
16
2,476
140
1,028
24
1,067
(1)
74
67
(327)
1
8,392
246
2,547
1,815
637
900
539
28
6,466
0
0
0
52
0
0
52
0
44
21
0
3
0
0
2
0
0
4
0
0
2
(1)
0
0
(20)
0
56
0
1,492
63%
1,133,467
520
73%
261,106
367
62%
108,130
169
84%
73,184
(532)
N/M
50,667
(336)
N/M
10,020
1,680
77%
1,636,574
166,353
21,247
79,613
14,251
40,954
5,283
13,722
6,174
57,708
7,539
14,963
0
373,313
54,493
28%
15%
28%
11%
(28)%
N/M
12%
19%
10%
19%
7%
(19)%
N/M
8%
1 Starting December 31, 2012, segment assets represent consolidated view, i.e., the amounts do not include intersegment
balances.
152
2
The post-tax return on average active equity at the Group level reflects the reported effective tax rate for the Group, which
was 34 % for the three months ended March 31, 2014. For the post-tax return on average active equity of the segments,
the Group effective tax rate was adjusted to exclude the impact of permanent differences not attributed to the segments, so
that the segment tax rates were 33 % for the first quarter of 2014.
(reviewed)
in € m.
Net revenues . . . . . . . . . . . .
Provision for credit
losses . . . . . . . . . . . . . . . . .
Total noninterest
expenses . . . . . . . . . . . . . .
thereof:
claims . . . . . . . . . . . . . . .
assets . . . . . . . . . . . . . . .
Restructuring activities . . .
Noncontrolling interests . .
Income (loss) before
income taxes . . . . . . . . . . .
Cost/income ratio . . . . . . . . . .
Assets(2) . . . . . . . . . . . . . . . . .
Risk-weighted assets
(Basel 2.5) . . . . . . . . . . . . . .
Average active equity . . . . . .
active equity . . . . . . . . . . . .
active equity(3) . . . . . . . . . .
Three months ended March 31, 2013
Deutsche
Corporate Private &
Global
Asset &
Non-Core
ConsoliBanking & Business Transaction
Wealth
Operations dations &
Total
Securities(1) Clients
Banking Management
Unit(1)
Adjustments Consolidated
4,547
2,385
1,034
1,244
441
(259)
9,391
51
111
92
13
87
0
354
2,578
1,791
623
1,012
613
6
6,623
0
0
0
191
0
0
192
0
42
10
0
1
0
0
2
0
0
7
1
0
13
(1)
0
0
(10)
0
65
0
1,908
57%
1,472,217
483
75%
270,928
318
60%
97,540
219
81%
80,129
(258)
139%
100,601
(255)
N/M
11,275
2,414
71%
2,032,690
115,153
18,875
72,419
13,289
35,246
4,575
12,071
5,488
77,583
11,610
12,434
0
324,908
53,836
40%
15%
28%
16%
(9)%
N/M
18%
27%
10%
19%
11%
(6)%
N/M
12%
1 In the first quarter of 2014, the Special Commodities Group was transferred from CB&S to NCOU. Prior year figures have
been restated.
2 Starting December 31, 2012, segment assets represent consolidated view, i.e., the amounts do not include intersegment
balances.
3 The post-tax return on average active equity at the Group level reflects the reported effective tax rate for the Group, which
was 31 % for the three months ended March 31, 2013. For the post-tax return on average active equity of the segments,
the Group effective tax rate was adjusted to exclude the impact of permanent differences not attributed to the segments, so
that the segment tax rates were 33 % for the first quarter of 2013.
Corporate Banking & Securities Corporate Division (CB&S)
(reviewed, unless
stated otherwise)
in € m.
Net revenues:
Sales & Trading (debt and other products)(2) . . . . . . . .
Sales & Trading (equity)(2) . . . . . . . . . . . . . . . . . . . . . . .
Origination (debt)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Origination (equity)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Advisory(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loan products(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other products(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
thereof:
Restructuring activities . . . . . . . . . . . . . . . . . . . . . . .
Impairment of intangible assets . . . . . . . . . . . . . . . .
Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . .
Three months
ended
March 31,
2014
2013(1)
Change in
in € m.
in %
2,433
772
358
160
107
255
(9)
4,076
16
2,547
2,717
766
453
152
69
250
139
4,547
51
2,578
(285)
6
(95)
8
37
5
(148)
(471)
(36)
(30)
(10)
1
(21)
6
54
2
N/M
(10)
(70)
(1)
44
0
21
1,492
42
0
10
1,908
3
0
12
(417)
6
N/M
121
(22)
been restated.
2 Unaudited.
153
CB&S reported solid revenues in the first quarter of 2014 despite the challenging market environment and
uncertainty around emerging markets.
The first quarter of 2014 net revenues were € 4.1 billion, a decrease of € 471 million, or 10 %, from € 4.5 billion
in the first quarter of 2013. In addition to the other effects on CB&S’ revenues described below, CB&S net
revenues were impacted by three valuation adjustment items. First, a mark-to-market gain of € 31 million (first
quarter of 2013: a gain of € 14 million) related to mitigating hedges for Capital Requirements Regulation (CRR)/
Capital Requirements Directive 4 (CRD 4) risk-weighted assets (RWA) arising on Credit Valuation Adjustment
(CVA). Second, a gain of € 18 million related to the Funding Valuation Adjustment (FVA). Partly offsetting these
was a loss of € 42 million (first quarter 2013: a gain of € 122 million) related to the impact of a Debt Valuation
Adjustment (DVA) on certain derivative liabilities. Excluding these items from both 2014 and 2013, net revenues
decreased by € 342 million, or 8 %, compared to the first quarter of 2013.
Sales & Trading (debt and other products) net revenues were € 2.4 billion in the first quarter of 2014, a
decrease of € 285 million, or 10 %, compared to the first quarter of 2013. Revenues in Foreign Exchange
were significantly lower than the first quarter of 2013 due to lower client activity, reflecting lower volatility
and challenging trading environment. Revenues in Credit Solutions were lower than the first quarter of 2013
primarily due to reduced margins in the Commercial Real Estate business, as well as lower revenues in Asia
region. Emerging Market revenues were lower than the first quarter of 2013 due to ongoing uncertainty
around emerging markets. Revenues in Global Liquidity Management were lower than the first quarter of
2013, reflecting both a smaller portfolio and a one-off gain in the first quarter of 2013. Revenues in Flow
Credit were higher than the first quarter of 2013, driven by strong performance in distressed products.
Revenues in Rates were higher than the first quarter of 2013, driven by increased client activity notably in
the Europe region.
Sales & Trading (equity) generated net revenues of € 772 million in the first quarter of 2014, in line with the
first quarter of 2013. Equity Trading and Equity Derivatives revenues were in line with the first quarter of
2013, despite the challenging market conditions. Prime Finance revenues were higher than the first quarter
of 2013, reflecting increased client balances.
Origination and Advisory generated revenues of € 625 million in the first quarter of 2014, a decrease of
€ 50 million, or 7 %, compared to the first quarter of 2013. Debt Origination revenues were lower than the
first quarter of 2013, driven by reduced issuance levels. Revenues in Advisory were significantly higher than
the first quarter of 2013, driven by increased market share. Revenues in Equity Origination were in line with
the first quarter of 2013.
Loan products revenues were € 255 million in the first quarter of 2014, compared to € 250 million in the
first quarter of 2013.
Net revenues from other products were € 9 million loss in the first quarter of 2014, a decrease of
€ 148 million compared to the first quarter of 2013, driven by the aforementioned loss of € 42 million from
DVA on certain derivative liabilities compared to a gain of € 122 million in the first quarter of 2013.
In provision for credit losses, CB&S recorded a net charge of € 16 million in the first quarter of 2014,
compared to a net charge of € 51 million in the first quarter of 2013, due to reduced provisions taken in the
Shipping portfolio and releases taken in the Americas region.
Noninterest expenses in the first quarter of 2014 decreased by € 30 million compared to the first quarter of
2013. The decrease is mainly due to lower performance based compensation and litigation charges, partly
offset by an increase in regulatory driven costs.
Income before income taxes was € 1.5 billion in the first quarter of 2014, compared to € 1.9 billion in the
first quarter of 2013, mainly driven by lower revenues.
154
Private & Business Clients Corporate Division (PBC)
in € m.
Net revenues:
Global credit products . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments, cards & account products . . . . . . . . . . . . .
Investment & insurance products . . . . . . . . . . . . . . . .
Postal and supplementary Postbank Services . . . . . . .
Other products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in
Three months
ended
March 31,
2014
2013
in € m.
in %
858
744
248
349
105
172
2,476(1)
854
760
256
316
108
91
2,385(1)
4
(16)
(8)
33
(4)
81
91(1)
1
(2)
(3)
10
(3)
89
4(1)
140(1)
1,815(1)
111(1)
1,791(1)
29(1)
24(1)
26(1)
1(1)
0(1)
0(1)
520(1)
0(1)
0(1)
483(1)
0(1)
0(1)
37(1)
N/M
N/M
8(1)
Private & Commercial Banking:
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . .
1,030
20
806
204
932
4
811
118
98
16
(5)
86
10
N/M
(1)
73
Advisory Banking International:
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
531
66
337
128
507
55
291
161
24
11
46
(33)
5
20
16
(21)
Postbank:
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . .
914
54
672
0
188
945
52
689
0
204
(31)
1
(17)
0
(16)
(3)
3
(2)
N/M
(8)
thereof:
Breakdown of PBC by business
1 Reviewed.
PBC recorded a solid improvement in income before income taxes in the first quarter of 2014 compared to
the first quarter of 2013, which reflected a one-off gain as well as higher revenues from investment &
insurance products.
First quarter 2014 net revenues in PBC increased by € 91 million, or 4 %, to € 2.5 billion, compared to the
first quarter of 2013. The increase in other product revenues of € 81 million, or 89 %, was primarily driven
by a subsequent gain of € 70 million related to a business sale closed in a period prior to the first quarter of
2014. Higher revenues from investment & insurance products of € 33 million, or 10 %, compared to the
first quarter of 2013, reflected an improved contribution of all business units. Credit products revenues
increased by € 4 million, or 1 %, reflecting volume increase mainly in the mortgage portfolio in Private &
Commercial Banking in the quarters previous to the first quarter of 2014. Net revenues from deposits
decreased by € 16 million, or 2 %, compared to the first quarter of 2013, as a result of de-leveraging mainly
in Postbank. Net revenues from payments, cards & accounts decreased by € 8 million, or 3 %, compared to
the first quarter of 2013. Net revenues from Postal and supplementary Postbank Services declined by
€ 4 million, or 3 %, compared to the first quarter of 2013, reflecting usual quarterly revenue fluctuations.
Provision for credit losses in the first quarter of 2014 increased by € 29 million, or 26 %, compared to the
first quarter of 2013 due to the one off effect of approximately € 30 million realized in the first quarter of
2013 from a portfolio sale. Excluding this positive effect, provision for credit losses decreased, reflecting
155
mainly the continued positive economic environment in Germany. In 2013, an additional credit of
€ 14 million was recorded in other interest income, representing increases in the credit quality of Postbank
loans recorded at fair value on initial consolidation by the Group.
Noninterest expenses in the first quarter of 2014 increased by € 24 million, or 1 %, to € 1.8 billion,
compared to the first quarter of 2013. The cost increase is primarily driven by € 24 million higher cost-toachieve as part of the OpEx Program. Excluding cost-to-achieve, noninterest expenses remained
unchanged compared to the first quarter of 2013. Decreases in the direct costs reflecting savings from
Deutsche Bank’s OpEx measures were offset by higher infrastructure expenses compared to the first
quarter of 2013.
Income before income taxes increased by € 37 million, or 8 %, compared to the first quarter of 2013,
mainly driven by higher revenues.
Invested assets in the first quarter of 2014 increased by € 2 billion compared to December 31, 2013, mainly
due to inflows in securities.
Global Transaction Banking Corporate Division (GTB)
in € m.
Net revenues:
Transaction services(1) . . . . . . . . . . . . . . . . . . . . . . . . . .
thereof:
Change in
Three months
ended
March 31,
2014
2013
in € m.
in %
(reviewed, unless stated otherwise)
1,028
1,028
1,034
1,034
(6)
(6)
(1)
(1)
24
637
92
623
(68)
14
(74)
2
2
0
0
367
2
0
0
318
1
0
0
49
27
N/M
N/M
15
1 Unaudited.
In the first quarter of 2014, continued low interest rate levels, a still highly competitive environment as well
as the difficult geopolitical circumstances affected some GTB markets. Furthermore, adverse FXmovements impacted the result reported in Euro. However, compared to the first quarter of 2013, GTB’s
net revenues decreased only marginally by € 6 million, or 1 %. In Trade Finance, revenues increased due to
strong volumes. Revenues in Trust & Securities Services showed a solid development based on growing
volumes and included a gain on the sale of registrar services GmbH. Cash Management increasingly came
under pressure, suffering from the ongoing low interest rates.
Provision for credit losses was € 24 million in the first quarter of 2014, compared to € 92 million in the first
quarter of 2013. The decrease is primarily attributable to the non-recurrence of a single client credit event in
Trade Finance that occurred in 2013 as well as to lower provisions in the commercial banking activities in
the Netherlands.
Noninterest expenses in the first quarter of 2014 increased by € 14 million, or 2 %, compared to the first
quarter of 2013. The first quarter of 2014 included cost-to-achieve related to the OpEx Program of
€ 19 million versus € 7 million in the first quarter of 2013. The remaining increase reflects other expenses in
relation to the execution of Strategy 2015+.
Income before income taxes in the first quarter of 2014 increased by € 49 million, or 15 %, compared to
the first quarter of 2013 due to lower provision for credit losses offset partially by a higher cost base.
156
Deutsche Asset & Wealth Management Corporate Division (DeAWM)
in € m.
Net revenues:
Management Fees and other recurring revenues . . . .
Performance and trans. fee and other non recurring
revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other product revenues . . . . . . . . . . . . . . . . . . . . . . . . .
Mark-to-market movements on policyholder positions
in Abbey Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net
revenues(1)
Three months
Change in
ended
March 31,
2014
2013
in € m.
in %
613
596
18
3
184
153
67
207
138
94
(23)
15
(27)
(11)
11
(29)
49
209
(159)
(76)
...........................
1,067
1,244
(177)
(14)
Provision for credit losses(1) . . . . . . . . . . . . . . . . . . . .
Total noninterest expenses(1) . . . . . . . . . . . . . . . . . . .
thereof:
Policyholder benefits and claims(1) . . . . . . . . . . . . . . .
Restructuring activities(1) . . . . . . . . . . . . . . . . . . . . . .
Impairment of intangible assets(1) . . . . . . . . . . . . . . .
Noncontrolling interests(1) . . . . . . . . . . . . . . . . . . . . .
(1)
900
13
1,012
(14)
(112)
N/M
(11)
52
4
0
0
191
7
0
1
(140)
(2)
0
(1)
(73)
(33)
N/M
N/M
Income before income taxes(1) . . . . . . . . . . . . . . . . . .
169
219
(50)
(23)
1 Reviewed.
In the first quarter 2014 operating environment, DeAWM continued to benefit from the rise of equity
markets as seen in the increase of assets under management in the quarter. Market conditions remain
susceptible to volatility, resulting in lower client activity and lower revenue on trading, additionally the low
interest rate environment continues to challenge deposit revenue margins. DeAWM sees continued
progression in the growth of its credit loan portfolio, with revenues and margins increasing and credit
losses remaining comparatively low. DeAWM’s initiative to improve its operating and technology platform
continues to deliver cost efficiencies.
In DeAWM, net revenues were € 1.1 billion in the first quarter of 2014, a decrease of € 177 million, or
14 %, compared to the first quarter of 2013, mainly comprised of € 159 million mark-to-market movements
on policy holder positions in Abbey Life, largely offset by lower noninterest expenses.
Management Fees and other recurring revenues in the first quarter of 2014 increased by € 18 million, or
3 %, compared to the first quarter of 2013 due to an increase of the average assets under management for
the 2014 quarter, following the positive market effect and a favorable shift in product mix from growth in
Alternatives and private clients. Performance and transaction fees and other non recurring revenues were
down € 23 million, or 11 %, driven by lower transaction revenues, particularly foreign exchange products
around private clients. Other product revenues decreased compared to the first quarter of 2013 by
€ 27 million, or 29 % mainly due to an impairment loss on existing disposal groups held for sale and
reduced net gains on fair value changes. Net interest income increased by € 15 million, or 11 %, due to
increased lending volume and improved lending margins in the first quarter of 2014. Mark-to-market
movements on policyholder positions in Abbey Life decreased by € 159 million, or 76 %, versus the first
quarter of 2013.
Provision for credit losses in the first quarter of 2014 decreased by € 14 million compared to the first
quarter of 2013, mainly resulting from lower specific client lending provisions in the United States and
recovery of prior losses in the first quarter of 2014.
Noninterest expenses of € 900 million in the first quarter of 2014 decreased by € 112 million, or 11 %,
compared to the first quarter of 2013, driven by lower policyholder benefits and claims and litigation, partly
offset by higher CtA spending in the first quarter of 2014. Excluding these effects, the underlying cost base
is down 2 % year-on-year mainly due to continued savings from OpEx initiatives.
Income before income taxes was € 169 million in the first quarter of 2014, a decrease of € 50 million, or
23 %, compared to the first quarter of 2013. This reflects increased CtA activity related to OpEx and lower
revenue due to reduced performance and transactions fees and other non-recurring items.
157
In the first quarter of 2014, invested assets increased by € 11 billion to € 934 billion due to positive market
effects and inflows.
Non-Core Operations Unit Corporate Division (NCOU)
(reviewed)
in € m.
Three months
ended
March 31,
2014
2013(1)
Change in
in € m.
in %
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
74
441
(367)
(83)
thereof:
67
539
87
613
(20)
(74)
(23)
(12)
2
0
(1)
13
0
(1)
(11)
0
0
(83)
N/M
(37)
(532)
(258)
(273)
106
been restated.
Net revenues for the NCOU in the first quarter of 2014 decreased by € 367 million, or 83 %, to € 74 million
compared to the first quarter of 2013, driven by lower portfolio revenues reflecting the significant reduction
in assets since the first quarter of 2013 and the impact from losses of € 151 million incurred by the Special
Commodities Group (SCG). The SCG losses resulted primarily from Deutsche Bank’s exposure to traded
products in the U.S. power sector, where a price spike caused by the severe weather conditions occurred
in January 2014. NCOU’s overall de-risking activity continued in the first quarter of 2014, generating a net
gain in the period.
Provision for credit losses in the first quarter of 2014 decreased by € 20 million compared to the first
quarter of 2013, predominantly driven by the absence of single client events which occurred in the 2013
quarter.
Noninterest expenses in the first quarter of 2014 were € 539 million. The decrease of € 74 million
compared to the first quarter of 2013 includes lower legal provisions, partly offset by an impairment. Costs
excluding litigation-related charges and impairments are approximately 17 % lower versus the first quarter
of 2013, which includes effects from Deutsche Bank’s de-risking strategy.
The loss before income taxes in the first quarter of 2014 increased by € 273 million versus the same
quarter in 2013, driven by the reduction in portfolio revenues as a result of asset sales and due to the
integration of SCG.
The CRR/CRD 4 fully loaded RWA movement during the first quarter of 2014 includes € 3.3 billion from
capital accretive de-risking activity, which was primarily offset by CVA-driven RWA adjustments. The
associated reduction in adjusted assets was € 12 billion, which includes € 6.4 billion following completion of
the BHF-BANK sale and € 3.5 billion reduction in SCG related exposures.
Consolidation & Adjustments (C&A)
(reviewed)
in € m.
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . .
Three months
ended
March 31,
2014
2013
(327)
(259)
1
28
(20)
(336)
0
6
(10)
(255)
Change in
in € m.
in %
(68)
26
0
22
(11)
(80)
N/M
N/M
110
31
Loss before income taxes in C&A was € 336 million in the first quarter of 2014, compared to a loss of
€ 255 million in the first quarter of 2013. This development was predominantly attributable to negative
€ 94 million Funding Valuation Adjustments in the first quarter of 2014 on internal uncollateralized
158
derivatives between Treasury and CB&S. Timing differences from different accounting methods used for
management reporting and IFRS amounted to negative € 133 million compared to negative € 159 million in
the first quarter of 2013. These valuation & timing differences predominantly reflect a decrease of the Euro
and U.S. dollar interest rates in the longer tenors and the impact from narrowed USD/EUR basis spreads.
Accruals for the German Bank levy were up compared to the first quarter of 2013, reflecting an increase of
relevant 2013 net income of Deutsche Bank AG according to German GAAP.
Comparison of the Fiscal Years ended December 31, 2013 and 2012
Overview
The Global Economy
Growth of the global economy, having already slowed slightly in 2012 to 3.0 %, continued to decline in
2013 to an estimated 2.8 % on an annualized basis. After the economy reached its low point in the first
quarter of 2013 compared to 2012, a recovery was seen over the course of the remainder of that year.
The slowdown affected industrialized and emerging market countries. Economic output slowed from 1.4 %
in 2012 to a projected 1.1 % in 2013 in industrialized countries and from 4.7 % to around 4.5 % in emerging
market countries. The structural problems that contributed to the financial and economic crisis remained in
focus in the industrialized countries. The reduction of private and public debt dampened growth, in
particular in the eurozone. Furthermore, political uncertainties in the eurozone and the United States
weighed on the global economy. Monetary policies of the major central banks continued to be extremely
accommodative and supported the global economy. Key interest rates were at historically low levels and
extensive quantitative easing measures provided additional support to the economy. In May 2013, initial
indications from Ben Bernanke, Chairman of the U.S. Federal Reserve at the time, that the U.S. central
bank might be reducing the rate of its asset purchases over the course of 2013 led to a change in the
international interest rate cycle, which then had a negative impact on numerous emerging market countries
as a result of capital outflows. The Federal Reserve’s decision in December 2013 to taper quantitative
easing starting January 2014 was largely priced into the market.
The eurozone, after six consecutive quarters of declining economic activity, experienced moderate growth
in the second quarter of 2013. As an annualized average, the eurozone economy declined by 0.4 % in 2013,
due to the weak winter half year 2012/2013, which was a little less than in 2012 (a decrease of 0.6 %). The
economy was supported by a recovery of the global economy and receding uncertainty over the future
development of the sovereign debt crisis. International investors’ trust in the eurozone improved in 2013,
which led to net capital inflows. A decisive factor of stabilization in the eurozone was the European Central
Bank’s accommodative monetary policy, and in particular its statement that it would use its full range of
instruments, e.g. lowering the policy rate corridor, very long term refinancing operations (vLTRO), private
and public asset purchases, in the event of an emergency, its reduction of the interest rate in November
2013 to the historic low of 0.25 % and its statement that it would hold the interest rate at this level or lower
for an extended period of time, as part of its “forward guidance” provided for the first time in 2013.
Germany’s economy began to recover following the weak winter half year 2012/2013. This was driven by
solid domestic demand, thanks to the peak employment level, solid real income growth and a moderate
rise in investments. As an annualized average, the German economy grew by 0.4 %, following an increase
of 0.7 % in 2012.
U.S. economic growth slowed in 2013 to an estimated 2.0 %, compared to 2.8 % in 2012. Automatic
spending cuts and uncertainties around the direction of fiscal policy – discussions of increasing the debt
ceiling and extending the transitional budget as well as the temporary government shutdown – dragged on
the economy. The recovery of the real estate market, the continuous improvement of employment figures
and the strong rise on the stock markets led to a recovery in the second half of 2013, with a growth rate of
around 4 %. Strong support to the U.S. economy came from the Federal Reserve’s expansive monetary
policy.
In Japan, economic growth rose slightly to 1.5 % in 2013, a development driven by extremely expansive
fiscal and monetary policies, the first two pillars of what is called “Abenomics”. However, there was little
that followed the announcement of the third pillar of Abenomics, structural reform, in 2013.
In emerging market countries, growth calmed to an estimated 4.5 % in 2013. The Federal Reserve’s
announcement in May that it might be reducing the rate of its asset purchases over the course of 2013
shifted attention to structural weaknesses of the emerging market countries that had been masked by
portfolio investments in preceding years, leading to strong outflows of capital. In particular, these affected
countries with relatively high budget and current account deficits such as South Africa, India, Indonesia,
Brazil and Turkey. Depending on the region, performance was mixed in emerging market countries.
Economic growth in Asia (excluding Japan) was estimated to have been at 5.9 %, slightly less than in 2012.
159
China’s economic activity – thanks to the recovery in the second half of 2013 – grew in 2013 by 7.7 %,
slightly below growth in 2012 (7.8 %). Although relatively weak world trade tempered growth in the first
half of 2013, the economy accelerated somewhat in the second half following the recovery of the global
economy. However, growth was subdued by uncertainties about the impact of a rebalancing of China’s
economic structures, which were to be pushed forward energetically by the extensive Central Committee
resolutions in November 2013. In India, the economy grew somewhat stronger at 4.3 % in 2013, not least
due to the devaluation by 12 % of the rupee versus the U.S. dollar over the course of 2013. Despite the
unfavorable political environment, the government launched extensive reforms intended to stimulate future
growth. Economic activity in Latin America grew by only an estimated 2.3 % in 2013, following 2.8 % in
2012. In Brazil, infrastructure bottlenecks, a lack of reforms and weak commodities prices weighed on the
economy, which was estimated to have grown by a moderate 2.2 % in 2013.
The Banking Industry
For the banking industry, 2013 was a year of transition. For the first time since 2006, there were no
existential crises threatening the U.S. or European banking systems, as the European debt crisis had
slowed down in late 2012. Still, 2013 was a year of substantial operating challenges, with banks almost
everywhere suffering from a lack of growth, the low interest rate environment, elevated litigation expenses,
tougher regulations and, particularly in Europe, continuing pressure from supervisors and investors to
strengthen, de-leverage and de-risk balance sheets.
Commercial banking in Europe witnessed a significant decline in credit volumes, particularly with firms,
whereas lending to households stayed virtually flat. Banks were still tightening credit standards but much
less compared to 2011 and 2012. The main obstacle to loan growth may instead have been a lack of
demand for credit, which fell further, even though the pace of the decline slowed over the course of 2013.
Loan loss provisions in Europe declined by 3.5 % in 2013 based on an analysis of the 22 largest banks,
representing about half of the sector’s total assets. On the funding side, private sector deposit growth
remained solid throughout 2013, for both corporate and retail clients. Banks’ bond issuance shrank once
more, to reach the lowest level in more than a decade. However, this may have been driven mainly by a
lack of funding needs rather than a lack of access to debt capital markets. Indeed, EU banks’ total assets
dropped by more than 4 % in 2013 compared to 2012.
In the United States, retail lending surprisingly turned negative again in 2013, driven by a lower volume of
residential mortgages, despite an ongoing recovery in the housing market. Loans to corporations, on the
other hand, continued to expand healthily, with all major lending categories returning to growth for the first
time since 2007. Loan losses sank still further to the lowest figures on record, to levels not even seen at
the peak of the credit boom. Deposit growth stayed robust, suffering neither from the low level of interest
rates nor from the expiry of Federal Deposit Insurance Corporation (FDIC) coverage for certain large
corporate deposits. With deposit growth outpacing loan growth, the deposit funding of banks’ balance
sheets climbed to its highest level in two decades.
Investment banking performance was heterogeneous in 2013. Bond issuance fell moderately from a very
strong level in 2012, with high-yield activity reaching a new record high. Equity issuance was also solid,
while the M&A business based on deal values had its best year since 2008, although revenues decreased.
Equity trading volumes in 2013 were even weaker than in 2012, whereas fixed-income trading remained
broadly flat compared to the 2012 result. Total investment banking revenues declined to the lowest level
since 2008 due to reduced activity in more profitable business segments and tighter regulation, e.g. relating
to derivative transactions. Revenues from issuance underwriting and advisory combined were up compared
with 2012 and were in fact the strongest since 2007, but revenues from trading and other activities were
down substantially, partly due to further margin compression.
Asset management businesses benefited from a particularly benign year for the capital markets: Market
liquidity remained high, demand for high-risk assets increased further (notwithstanding some capital
outflows from emerging market countries into developed markets), interest rates stayed very low (despite
some uptick following announcements by the U.S. Federal Reserve it would taper its exceptionally loose
monetary policy), and several major stock markets reached new record levels.
Overall, European banks’ profitability in 2013 improved from the miserable levels of 2011 and 2012, when
the European Union banking industry recorded aggregate net losses in the wake of the European debt crisis
and the associated recession. However, returns in 2013 were still meager and far below sustainable levels,
i.e. banks’ cost of capital. Net income for banks in the United States overall rose by 10 % in 2013, reaching
a new all-time high in absolute terms without impacting return on equity due to a larger capital base.
Regarding regulatory developments, 2013 saw further progress on a number of important projects to build
a new architecture for a safer, more stable banking system. EU policymakers agreed on crucial components
of a future European Banking Union by deciding to transfer supervision of the euro area’s largest banks to
160
the ECB as well as, in principle, designing mechanisms to resolve failing banks without requiring taxpayer
support. Implementation of Basel 3 commenced both in Europe and the United States. Furthermore,
discussions intensified on the international introduction of a binding leverage ratio, with U.S. authorities
pressing ahead with considerably increased requirements for large domestic credit institutions. Derivative
markets reform took final shape in the EU through the European Market Infrastructure Regulation (EMIR),
while implementation of new derivatives rules under the Dodd-Frank Act already started in the United
States.
Deutsche Bank Performance
The key financial highlights for the Group in 2013 can be summarized as:
• Group net revenues of € 31.9 billion in 2013, down 5 % versus 2012 largely reflecting revenue declines
in CB&S;
• Income before income taxes of € 1.5 billion in 2013, up 79 % from 2012;
• Net income increased from € 316 million in 2012 to € 681 million in 2013;
• CRR/CRD 4 pro forma fully loaded Common Equity Tier 1 ratio was 9.7 % (Basel 2.5 CET 1: 12.8 %) at
the end of 2013, compared to 7.8 % (Basel 2.5 CET 1: 11.4 %) at the end of 2012;
• Adjusted pro forma CRR/CRD 4 leverage ratio was 3.1 % at year-end 2013;
• CRR/CRD 4 pro forma fully loaded risk-weighted assets of € 350 billion (Basel 2.5 RWA € 300 billion) as
of December 31, 2013 down by 11 % compared to December 31, 2012 (down 10 % based on Basel 2.5
RWA).
2013 was the second consecutive year in which Deutsche Bank had invested in the bank’s future growth
and in further strengthening its controls while addressing ongoing legal and regulatory issues. Costs-toachieve of Deutsche Bank’s Operational Excellence (OpEx) Program and litigation expenses impacted its
financial results in 2013.
Net revenues in 2013 were € 31.9 billion, a 5 % decline from 2012. Most of the decline in net revenues
was attributable to CB&S, along with slight decreases in GTB and NCOU, while PBC revenues were stable
and DeAWM revenues increased. Noninterest expenses in 2013 were € 28.4 billion, down 9 % from 2012,
reflecting significant cost reductions as well as a substantial reduction in impairment charges for goodwill
and intangible assets as compared to 2012. The cost reductions included a € 1.2 billion, or 9 % decrease in
Deutsche Bank’s compensation and benefits expenses in 2013 compared to 2012, due to reduced bonus
and retention awards and as a result of the ongoing implementation of OpEx. Expenses also included
significant litigation-related expenses of € 3.0 billion in 2013 (2012: € 2.5 billion).
In this context, Deutsche Bank generated net income of € 681 million in 2013 (2012: € 316 million) and
income before income taxes of € 1.5 billion (2012: € 814 million).
The financial Key Performance Indicators (KPIs) of the Group are detailed in the table below:
Post-tax return on average active equity . . . . . . . . . . . . . . . . .
Cost/income ratio(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost savings(4)(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Costs to achieve savings(5)(6) . . . . . . . . . . . . . . . . . . . . . . . . . . .
CRR/CRD 4 pro forma fully loaded Common Equity Tier 1
ratio(5)(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjusted CRR/CRD 4 leverage ratio(5)(8) . . . . . . . . . . . . . . . . . .
December 31, 2013 December 31, 2012
1.2%(1)
0.5%(2)
89.0%(1)
92.5%(2)
€ 2.1 bn per annum(1) € 0.4 bn per annum(2)
€ 1.8 bn(1)
€ 0.5 bn(2)
9.7%
3.1%
7.8%
N/A
1 For the fiscal year 2013
2 For the fiscal year 2012
3 Total noninterest expenses as a percentage of total net interest income before provision for credit losses plus noninterest
income.
5 Unaudited.
6 Cost-to-achieve directly required for the realization of savings in the OpEx Program.
7 The CRR/CRD 4 pro forma fully loaded Common Equity Tier 1 ratio represents Deutsche Bank’s calculation of its Common
Equity Tier 1 ratio without taking into account the phase in provisions of CRR/CRD 4. Further detail on the calculation of this
ratio is detailed under the heading “Risk Management—Regulatory Capital—Pro forma CRR/CRD 4 Solvency Measures”.
8 The adjusted CRR/CRD 4 leverage ratio represents Deutsche Bank’s calculation following the publication of CRR/CRD 4 on
June 27, 2013 as amended. Not available for end of 2012. Further detail on the calculation of this ratio is detailed under the
heading “Risk Management—Balance Sheet Management—Leverage Ratio according to CRR/CRD 4 (unaudited)”.
161
The post tax return on average equity increased from 0.5 % in 2012 to 1.2 % in 2013, but remained below
the target of greater than 12 %.
Despite lower net revenues compared to 2012, the cost/income ratio improved from 92.5 % in 2012 to
89.0 % in 2013, reflecting the continued reduction of noninterest expenses in the course of Deutsche
Bank’s OpEx Program.
OpEx Program annual cost savings of € 2.1 billion were achieved in 2013, surpassing the target of
€ 1.6 billion. Cumulative costs to achieve were € 1.8 billion (thereof € 1.3 billion spent in 2013 and
€ 0.5 billion spent in 2012).
Due to the increase in net income, the issuance of new shares and the accelerated capital formation and
de-risking activities in 2013, Deutsche Bank’s Basel 2.5 Common Equity Tier 1 capital ratio improved to a
level of 12.8 % as of December 31, 2013 and the Tier 1 capital ratio improved to a level of 16.9%. The CRR/
CRD 4 pro forma fully loaded Common Equity Tier 1 ratio also increased substantially from 7.8 % in 2012 to
9.7 % at the end of 2013, reflecting substantial progress on portfolio optimization and de-risking of non-core
activities.
The adjusted pro forma CRR/CRD 4 leverage ratio was 3.1 % at the end of 2013 based on a CRR/CRD 4 pro
forma leverage exposure of € 1,445 billion as of December 31, 2013.
Risk-weighted assets based on Basel 2.5 at year-end 2013 were € 300 billion, versus € 334 billion at yearend 2012, largely due to management actions aimed at de-risking Deutsche Bank’s business. During 2013,
Deutsche Bank achieved a reduction in CRR/CRD 4 pro forma fully loaded risk-weighted assets to
€ 350 billion.
Net Interest Income
The following table sets forth data related to Deutsche Bank’s net interest income.
Change in
fiscal year 2013 to
fiscal year 2012
in € m.
Total interest and similar income . . . . . . . . . . . . . . . . . . . . . . . .
Total interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average interest-earning assets(1)(2) . . . . . . . . . . . . . . . . . . . . . .
Average interest-bearing liabilities(1)(2) . . . . . . . . . . . . . . . . . . . .
Gross interest yield(1)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross interest rate paid(1)(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net interest spread(1)(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net interest margin(1)(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013
2012
in € m.
in %
25,601
31,593
(5,992)
(19)
10,768
15,619
(4,851)
(31)
14,834
15,975
(1,141)
(7)
1,136,662
979,245
2.25%
1.10%
1.15%
1.31%
1,250,002
1,119,374
2.53%
1.40%
1.13%
1.28%
(113,340)
(140,129)
(0.28) ppt
(0.30) ppt
0.02 ppt
0.03 ppt
(9)
(13)
(11)
(21)
2
2
ppt – Percentage points
1 Unaudited.
2 Average balances for each year are calculated in general based upon month-end balances.
3 Gross interest yield is the average interest rate earned on Deutsche Bank’s average interest-earning assets.
4 Gross interest rate paid is the average interest rate paid on Deutsche Bank’s average interest-bearing liabilities.
5 Net interest spread is the difference between the average interest rate earned on average interest-earning assets and the
average interest rate paid on average interest-bearing liabilities.
6 Net interest margin is net interest income expressed as a percentage of average interest-earning assets.
The decrease in net interest income in 2013 of € 1.1 billion, or 7 %, to € 14.8 billion compared to
€ 16.0 billion in 2012, was primarily driven by lower interest income on trading assets in CB&S, due to
lower client activity reflecting lower liquidity and ongoing market uncertainty. Another main driver to the
decline in net interest income was the accelerated de-risking strategy in NCOU. In PBC, slightly reduced
margins and a strategic deposit volume reduction in Postbank also impacted net interest income in 2013.
Overall, the net interest spread in 2013 increased by 2 basis points compared to 2012, following an almost
parallel decline in gross interest yield and gross interest rate paid. The net interest margin in 2013 improved
by 3 basis points, mainly due to margin improvements in Germany.
The development of Deutsche Bank’s net interest income in 2013 was also impacted by the accounting
treatment of some of its hedging-related derivative transactions. Deutsche Bank entered into nontrading
162
derivative transactions primarily as economic hedges of the interest rate risks of its nontrading interestearning assets and interest-bearing liabilities. Some of these derivatives qualified as hedges for accounting
purposes while others did not. When derivative transactions qualified as hedges of interest rate risks for
accounting purposes, the interest arising from the derivatives was reported in interest income and expense,
where it offset interest flows from the hedged items. When derivatives did not qualify for hedge accounting
treatment, the interest flows that arose from those derivatives appeared in trading income. The same
accounting policy was applied for the periods ended December 31, 2013, 2012 and 2011.
Net Gains (Losses) on Financial Assets/Liabilities at Fair Value through Profit or Loss
The following table sets forth data related to Deutsche Bank’s net gains (losses) on financial assets/
liabilities at fair value through profit or loss.
Change in
fiscal year 2013 to
fiscal year 2012
in € m.
CB&S – Sales & Trading (equity) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CB&S – Sales & Trading (debt and other products) . . . . . . . . . . . . .
Non-Core Operations Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net gains (losses) on financial assets/liabilities at fair
value through profit or loss(1) . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013
2012
in € m.
in %
1,125
991
133
13
2,544
4,508
(1,964)
(44)
(535) (1,257)
722
(57)
684
1,367
(682)
(50)
3,817
5,608
(1,791)
(32)
1 Audited.
Net gains on financial assets/liabilities at fair value through profit or loss decreased by € 1.8 billion to
€ 3.8 billion for 2013. The main driver for this development was a decrease of € 2.0 billion in Sales &
Trading (debt and other products), which was primarily driven by lower client activity coupled with a
challenging trading environment and market uncertainty impacting Rates and Commodities, as well as by
lower revenues in Foreign Exchange due to lower volatility and margin compression. In addition, the
decrease was significantly driven by a fall of € 682 million in Other, mainly reflecting the non-recurrence of a
refinement in 2012 in the calculation methodology of the Debt Valuation Adjustment (DVA) on certain
derivative liabilities in CB&S, the deconsolidation of funds in DeAWM offset by increases in other revenues
categories and C&A. The increase of € 722 million in NCOU in 2013 was due to a decrease in net losses on
financial assets/liabilities at fair value through profit or loss, mainly driven by a smaller asset base as a result
of an accelerated de-risking strategy and fair value movements on some of Deutsche Bank’s non-core
assets. The increase of € 133 million in net gains on financial assets/liabilities at fair value through profit or
loss in Sales & Trading (equity) in 2013 was due to increased client activity and an improved market
environment resulting in higher revenues from equity trading.
Net Interest Income and Net Gains (Losses) on Financial Assets/Liabilities at Fair Value through Profit or
Loss
Deutsche Bank’s trading and risk management businesses include significant activities in interest rate
instruments and related derivatives. Under IFRS, interest and similar income earned from trading
instruments and financial instruments designated at fair value through profit or loss (i.e., coupon and
dividend income) and the costs of funding net trading positions are part of net interest income. Deutsche
Bank’s trading activities can periodically shift income between net interest income and net gains (losses) on
financial assets/liabilities at fair value through profit or loss depending on a variety of factors, including risk
management strategies.
163
In order to provide a more business-focused discussion, the following table presents net interest income
and net gains (losses) on financial assets/liabilities at fair value through profit or loss by corporate division
and by product within CB&S.
Change in
fiscal year 2013 to
fiscal year 2012
in € m.
2013
2012
in € m.
in %
(audited)
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,834 15,975
(1,141)
(7)
Total net gains (losses) on financial assets/liabilities at fair value
through profit or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,817
5,608
(1,791)
(32)
Total net interest income and net gains (losses) on financial
assets/liabilities at fair value through profit or loss . . . . . . . . .
Breakdown by Corporate Division/product(1):
Sales & Trading (equity) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales & Trading (debt and other products) . . . . . . . . . . . . . . . . . .
Total Sales & Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loan products(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Remaining products(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate Banking & Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Transaction Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deutsche Asset & Wealth Management . . . . . . . . . . . . . . . . . . . . . . .
Private & Business Clients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-Core Operations Unit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidation & Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18,651
21,583
(2,932)
(14)
2,129
6,230
8,359
599
72
9,030
1,984
1,568
5,966
83
19
1,732
8,226
9,958
182
589
10,729
2,016
1,974
6,220
275
369
397
(1,996)
(1,599)
418
(517)
(1,699)
(32)
(406)
(254)
(191)
(350)
23
(24)
(16)
N/M
(88)
(16)
(2)
(21)
(4)
(70)
(95)
18,651
21,583
(2,932)
(14)
1 This breakdown reflects net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or
loss only. For a discussion of the corporate divisions’ total revenues by product please refer to Note 5 “Net Interest Income
and Net Gains (Losses) on Financial Assets/Liabilities at Fair Value through Profit or Loss” to the consolidated financial
statements of Deutsche Bank as of and for the fiscal year ended December 31, 2013, which are contained in the section
“Financial Statements” of this Prospectus.
2 Includes the net interest spread on loans as well as the fair value changes of credit default swaps and loans designated at
fair value through profit or loss.
3 Includes net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or loss of
origination, advisory and other products.
Corporate Banking & Securities (CB&S). Combined net interest income and net gains (losses) on financial
assets/liabilities at fair value through profit or loss were € 9.0 billion in 2013, a decrease of € 1.7 billion, or
16 %, compared to 2012. This decrease was partly driven by products outside of Sales & Trading. For
Remaining products, the decrease was mainly related to the non-recurrence of a refinement in the
calculation methodology of the Debt Valuation Adjustment (DVA) on certain derivative liabilities in 2012. In
Sales & Trading (debt and other products), the main drivers for the decrease were lower revenues in RMBS
due to de-risking activity undertaken this year, weaker liquidity and market uncertainty, lower revenues in
Foreign Exchange due to lower volatility and margin compression and weaker trading revenues in
Commodities and Rates. Partly offsetting these were an increase in Loan products due to favorable
movements in credit spreads, a lower proportion of lending activity measured at fair value and lower overall
hedge costs. The increase in Sales & Trading (equity) in 2013 was primarily driven by non-recurrence of
higher dividend payout in 2012 in Equity Derivatives, increased client activity and an improved market
environment in Equity Trading business.
Global Transaction Banking (GTB). Combined net interest income and net gains (losses) on financial assets/
liabilities at fair value through profit or loss were € 2.0 billion in 2013, a decrease of € 32 million, or 2 %,
compared to 2012. Net interest income declined compared to 2012 driven by low interest rate in core
markets, and competitive pressure on margins. Furthermore, foreign exchange-movements compared to
2012 adversely impacted the income reported in Euro.
Deutsche Asset & Wealth Management (DeAWM). Combined net interest income and net gains (losses) on
financial assets/liabilities at fair value through profit or loss were € 1.6 billion in 2013, a decrease of
€ 406 million, or 21 %, compared to 2012. The decrease in net interest income and net gains (losses) on
financial assets/liabilities at fair value through profit or loss was mainly attributable to the deconsolidation of
funds in 2013 and was offset at the Group level by increases in other revenues categories.
164
Private & Business Clients (PBC). Combined net interest income and net gains (losses) on financial assets/
compared to 2012. This decrease was primarily due to the persisting low interest rate environment
affecting revenues on deposits and higher negative impact from purchase price allocation on Postbank.
Non-Core Operations Unit (NCOU). Combined net interest income and net gains (losses) on financial assets/
liabilities at fair value through profit or loss were € 83 million in 2013, a decrease of € 191 million, or 70 %,
compared to 2012. The main driver for the decrease was lower portfolio revenues due to asset reductions
across all products in the NCOU. This was a result of an accelerated de-risking strategy, leading overall to a
reduction in fair value losses.
Consolidation & Adjustments. Combined net interest income and net gains (losses) on financial assets/
liabilities at fair value through profit or loss were € 19 million in 2013, compared with € 369 million in 2012.
This decrease primarily reflected lower positive effects resulting from timing differences from different
accounting methods used for management reporting and IFRS. The remaining decline was mainly due to
net interest income which was not allocated to the business segments and items outside the management
responsibility of the business segments, for example funding expenses on non-divisionalized assets/
liabilities.
Provision for Credit Losses
Provision for credit losses in 2013 were € 2.1 billion, up by € 344 million or 20 % versus 2012. In NCOU,
provision for credit losses increased in 2013 compared to 2012, reflecting a number of single client items,
including an item related to the European Commercial Real Estate sector. Provision for credit losses also
increased in GTB, related to a single client credit event, and in CB&S, from higher charges relating to
shipping companies. These increases were partly offset by lower provisions in PBC reflecting the improved
credit environment in Germany.
Remaining Noninterest Income
The following table sets forth information on the remaining noninterest income.
in € m.
Commissions and fee income(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net gains (losses) on financial assets available for sale . . . . . . . . . . .
Net income (loss) from equity method investments . . . . . . . . . . . . . .
Other income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total remaining noninterest income . . . . . . . . . . . . . . . . . . . . . . . .
2013
12,308
394
369
193
13,264
Change in
fiscal year 2013 to
fiscal year 2012
2012
in € m.
in %
(audited)
11,809
500
4
301
93
31
163
206
127
(120)
313
N/M
12,153
1,111
9
1 Includes:
2013
2012
in € m.
in %
Commissions and fees from fiduciary activities:
Commissions for administration(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commissions for assets under management(1) . . . . . . . . . . . . . . . . . . . . . . . .
Commissions for other securities business(1) . . . . . . . . . . . . . . . . . . . . . . . . .
435
2,963
247
449
2,609
239
(13)
354
8
(3)
14
3
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,646
3,297
349
11
Commissions, broker’s fees, mark-ups on securities underwriting and other
securities activities:
Underwriting and advisory fees(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Brokerage fees(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,378
1,542
2,318
1,526
60
15
3
1
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,920
3,844
76
2
Fees for other customer services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,742
4,667
76
2
Total commissions and fee income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12,308
11,809
500
4
1 Unaudited.
Commissions and fee income. Total Commissions and fee income increased from € 11.8 billion in 2012 by
€ 500 million to € 12.3 billion in 2013. Commissions for assets under management increased from a
165
favorable development in the leveraged debt markets globally, which benefited from low interest rates.
Underwriting and advisory fees as well as brokerage fees and fees for other customer services improved
driven by higher client activity levels and improved market conditions for global equity trading.
Net gains (losses) on financial assets available for sale. Net gains on financial assets available for sale were
€ 394 million in 2013 compared to € 301 million in 2012. The net gain in 2013 mainly resulted from the derisking activities related to the NCOU portfolio.
Net income (loss) from equity method investments. Net gains from equity investments increased from
€ 163 million in 2012 to € 369 million in 2013. The result in 2013 included 374 million from an equity pick up
related to the investment in Hua Xia Bank.
Other income (loss). Other income improved from negative € 120 million in 2012 to positive € 193 million in
2013. The improvement in 2013 was predominantly due to NCOU de-risking of portfolios. An impairment
related to the expected sale of BHF-BANK was partly offset by continuing positive development of
operating profits in Maher Terminals. Losses recorded from derivatives qualifying for hedge accounting
were significantly lower than in 2012.
Noninterest Expenses
The following table sets forth information on the noninterest expenses.
in € m.
Compensation and benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative expenses(1) . . . . . . . . . . . . . . . . . . . . . . . .
Policyholder benefits and claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Restructuring activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
2013
12,329
15,126
460
79
399
28,394
Change in
fiscal year 2013 to
fiscal year 2012
2012
in € m.
In %
(audited)
13,490
(1,160)
(9)
15,017
110
1
414
46
11
1,886
(1,808)
(96)
394
5
1
31,201
(2,807)
(9)
Includes:
2013
IT costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Occupancy, furniture and equipment expenses . . . . . . . . . . . . . . .
Professional service fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Communication and data services . . . . . . . . . . . . . . . . . . . . . . . . . .
Travel and representation expenses . . . . . . . . . . . . . . . . . . . . . . . .
Payment, clearing and custodian services . . . . . . . . . . . . . . . . . . .
Marketing expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other expenses(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total general and administrative expenses . . . . . . . . . . . . . . . .
1
3,074
2,073
1,804
865
441
569
314
797
5,189
15,126
2012
in € m.
(audited)
2,547
527
2,115
(42)
1,852
(48)
907
(42)
518
(77)
609
(40)
362
(48)
760
37
5,347
(158)
15,017
110
in %
21
(2)
(3)
(5)
(15)
(7)
(13)
5
(3)
1
Includes litigation related expenses of € 3.0 billion in 2013 and of € 2.6 billion in 2012. 2011 included specific charges in
CB&S (€ 655 million litigation related expenses and a specific charge of € 310 million relating to the impairment of a
German VAT claim) and the first time consideration of € 247 million for the German and U.K. bank levies.
Compensation and benefits. Compensation and benefits decreased by € 1.2 billion, or 9 %, to € 12.3 billion
in 2013 compared to € 13.5 billion in 2012. The reduction was driven by lower compensation and benefits,
reflecting a reduced deferred award amortization due to lower deferred grants awarded and positive effects
from the ongoing implementation of OpEx.
General and administrative expenses. General and administration expenses increased by € 110 million, or
1 %, from € 15.0 billion in 2012 to € 15.1 billion in 2013. The increase was primarily driven by higher
litigation expenses as well as higher IT costs resulting from higher cost-to-achieve and project ramp-up
costs in 2013. Partly offsetting was the non-recurrence of turnaround measures taken in the Netherlands in
2012. In addition, professional service fees, communication, travel and representation expenses as well as
marketing expenses decreased.
166
Policyholder benefits and claims. Policyholder benefits and claims increased by € 46 million from
€ 414 million in 2012 to € 460 million in 2013 and were solely driven by insurance-related charges regarding
the Abbey Life business. These charges were offset by net gains on financial assets/liabilities at fair value
through profit or loss on policyholder benefits and claims.
Impairment of intangible assets. In 2013 the impairment charges on goodwill and intangibles of € 79 million
were mainly attributable to the commercial banking activities in the Netherlands. Similar to 2012, these
charges were incurred in respect of the further execution of the turn-around measures as part of the
Strategy 2015+.
Restructuring. In 2013, restructuring expenses of € 399 million resulted from Deutsche Bank’s OpEx
Program and were virtually unchanged to the prior year.
Income Tax Expense
In 2013, income tax expense was € 775 million, which led to an effective tax rate of 53 % compared to an
income tax expense of € 498 million and an effective tax rate of 61 % in 2012. The effective tax rate in
2013 was mainly impacted by expenses that were not deductible for tax purposes.
The following is a discussion of the results of Deutsche Bank’s business segments. See Note 4 “Business
Segments and Related Information” to the consolidated financial statements of Deutsche Bank for the
fiscal year 2013, which are contained in the section “Financial Statements” of this Prospectus for
information regarding:
• changes in the format of Deutsche Bank’s segment disclosure;
• the framework of Deutsche Bank’s management reporting systems; and
• definitions of non-GAAP financial measures that are used with respect to each segment.
The criterion for segmentation into divisions is Deutsche Bank’s organizational structure as it existed at
December 31, 2013. Segment results were prepared in accordance with Deutsche Bank’s management
reporting systems in effect on December 31, 2013.
2013
(audited)
in € m.
Net revenues(1) . . . . . . . . . .
losses . . . . . . . . . . . . . . . .
Total noninterest
expenses . . . . . . . . . . . . .
thereof:
Depreciation, depletion
and amortization . . . . . .
Severance payments . . . .
claims . . . . . . . . . . . . . .
Restructuring activities . .
assets . . . . . . . . . . . . . .
Noncontrolling
interests . . . . . . . . . . . . . .
income taxes . . . . . . . . .
Deutsche
Corporate
Global
Asset &
Private & Non-Core
Total
ConsoliBanking & Transaction
Wealth
Business Operations Management dations &
Total
Securities Banking Management Clients
Unit
Reporting Adjustments Consolidated
13,623
4,069
4,735(4)
9,550
867
32,844
(929)
31,915
190
315
23
719
818
2,064
0
2,065
10,353
2,648
3,929
7,276
3,358
27,564
830
28,394
2
27
0
8
0
5
0
225
2
13
5
278
18
25
23
303
0
147
0
54
460
170
0
22
0
7
460
399
0
0
460
399
0
57
14
7
0
79
0
79
16
0
1
0
(3)
15
(15)
0
3,063
1,107
782
1,555
(3,306)
3,200
(1,744)
1,456
Cost/income ratio . . . . . . . .
76%
Assets(2)(3) . . . . . . . . . . . . . . . 1,111,592
Expenditures for additions
to long-lived assets . . . . .
12
Risk-weighted assets . . . . . 118,689
20,687
Average active equity(5) . . . .
active equity . . . . . . . . . . .
15%
(6)
active equity . . . . . . . . .
9%
65%
97,240
83%
76%
72,613 265,359
N/M
54,224
84 %
1,601,029
N/M
10,372
89%
1,611,400
9
36,811
5,082
7
12,553
5,855
176
73,001
13,976
0
48,483
9,833
203
289,537
55,434
539
10,832
0
742
300,369
55,434
22%
13%
11%
(34)%
6%
N/M
3%
13%
8%
6%
(20)%
3%
N/M
1%
5,409
1,930
988
5,963
619
14,909
(76)
14,834
77
3
18
375
(105)
368
1
369
628
48
143
2,563
171
3,554
28
3,581
1 Includes:
Net interest
income . . . . . . . . . .
Net income (loss)
from equity
method
investments . . . . .
2 Includes:
Equity method
167
3
4
5
6
Starting 2012, segment assets represent consolidated view, i.e., the amounts do not include intersegment balances.
Includes revenues in Abbey Life related to Policyholder benefits and claims of € 494 million offset in expenses.
Effective July 1, 2013, the definition of active equity has been aligned to the CRR/CRD 4 framework. Under the revised
definition, shareholders’ equity is adjusted only for dividend accruals, the figures for 2013 were adjusted to reflect this
effect.
The post-tax return on average active equity at the Group level reflects the reported effective tax rate for the Group, which
was 53 % for the year ended December 31, 2013. For the post-tax return on average active equity of the segments, the
Group effective tax rate was adjusted to exclude the impact of permanent differences not attributed to the segments, so
that the segment tax rates were 42 % for the year ended December 31, 2013.
2012
(audited)
in € m.
Net revenues(1) . . . . . . . . .
losses . . . . . . . . . . . . . . .
Total noninterest
expenses . . . . . . . . . . . .
thereof:
and amortization
Severance payments . . .
claims . . . . . . . . . . . . . .
Restructuring
activities . . . . . . . . . . . .
assets . . . . . . . . . . . . . .
Noncontrolling
interests . . . . . . . . . . . . .
income taxes . . . . . . . . .
Deutsche
Corporate
Global
Asset &
Private & Non-Core
Total
Wealth
Total
Unit
15,448
4,200
4,470(4)
9,540
1,054
34,711
(975)
33,736
81
208
18
781
634
1,721
0
1,721
12,459
3,326
4,297
7,224
3,312
30,618
582
31,201
5
167
0
24
0
42
0
249
2
3
8
486
17
58
25
543
0
0
414
0
0
414
0
414
244
40
104
0
4
392
0
394
1,174
73
202
15
421
1,886
0
1,886
17
0
1
16
31
65
(65)
0
154
2,891
665
1,519
(2,923)
2,307
(1,493)
814
Cost/income ratio . . . . . . . .
81%
Assets(2)(3) . . . . . . . . . . . . . . 1,464,721
15
Average active equity(5) . . .
20,790
active equity . . . . . . . . . .
14%
active equity(6) . . . . . . . . .
9%
79%
87,997
96%
76%
78,103 282,427
N/M
97,451
88%
2,010,699
N/M
11,577
92%
2,022,275
1
34,976
4,133
1
12,429
5,907
140
72,695
12,177
0
80,317
11,920
157
317,472
54,927
477
16,133
0
634
333,605
54,927
16%
3%
12%
(25)%
4%
N/M
1%
10%
2%
8%
(16)%
3%
N/M
1%
1 Includes:
Net interest
income . . . . . . . . .
5,208
1,964
1,033
6,115
1,531
15,851
123
15,975
Net income (loss)
from equity
method
131
5
6
312
(295)
159
4
163
2 Includes:
Equity method
751
46
131
2,303
307
3,538
39
3,577
3 Starting 2012, segment assets represent consolidated view, i.e., the amounts do not include intersegment balances. The
2012 period was adjusted accordingly.
4 Includes revenues in Abbey Life related to Policyholder benefits and claims of € 420 million offset in expenses.
5 Effective July 1, 2013, the definition of active equity has been aligned to the CRR/CRD 4 framework. Under the revised
effect.
168
The following table sets forth the results of the Corporate Banking & Securities Corporate Division (CB&S)
for the years ended December 31, 2013 and 2012, in accordance with Deutsche Bank’s management
in € m.
2013
Change in
fiscal year 2013 to
fiscal year 2012
2012
in € m.
in %
(audited)
Net revenues:
Sales & Trading (debt and other products) . . . . . . . . . . . . . . .
Sales & Trading (equity) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Origination (debt) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Origination (equity) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Advisory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loan products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6,903
2,737
1,557
732
480
1,234
(21)
9,190
2,288
1,417
518
590
899
547
(2,288)
449
140
214
(110)
336
(567)
(25)
20
10
41
(19)
37
N/M
Total net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13,623
15,448
(1,826)
(12)
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . .
thereof:
Restructuring activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment of intangible assets . . . . . . . . . . . . . . . . . . . . . .
190
10,353
81
12,459
109
(2,106)
134
(17)
147
0
16
244
1,174
17
(96)
(1,174)
(1)
(40)
N/M
(6)
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . .
3,063
2,891
172
6
Cost/income ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk-weighted assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average active equity(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pre-tax return on average active equity . . . . . . . . . . . . . . . . . .
76%
1,111,592
118,689
20,687
15%
81%
N/M
1,464,721 (353,128)
117,056
1,633
20,790
(103)
14%
N/M
(5) ppt
(24)
1
0
1 ppt
1 Segment assets represent consolidated view, i.e., the amounts do not include intersegment balances.
2 See Note 4 “Business Segments and Related Information” to the consolidated financial statements of Deutsche Bank for
the fiscal year 2013, which are contained in the section “Financial Statements” of this Prospectus, for a description of how
average active equity is allocated to the divisions.
Performance in 2013 was significantly impacted by continued market uncertainty, in particular regarding the
U.S. Federal Reserve’s decision on tapering its quantitative easing program, coupled with a reduction in
liquidity and slowdown in client activity.
Net revenues in 2013 were € 13.6 billion, a decline of € 1.8 billion or 12 % from the € 15.4 billion in 2012.
The net revenues were impacted by three valuation adjustment items. First, a mark-to-market loss of
€ 265 million related to mitigating hedges for pro forma Capital Requirements Regulation (CRR)/Capital
Requirements Directive 4 (CRD 4) risk-weighted assets (RWA) arising on Credit Valuation Adjustment
(CVA). Second, a loss of € 21 million related to the impact of a Debt Valuation Adjustment (DVA) on certain
derivative liabilities. Partly offsetting these was a gain of € 83 million related to the Funding Valuation
Adjustment (FVA) on certain derivatives exposures. Excluding these items, both 2013 and 2012, net
revenues decreased by € 1.3 billion, or 8 %, compared to 2012.
Sales & Trading (debt and other products) net revenues in 2013 were € 6.9 billion, a decrease of
€ 2.3 billion, or 25 % compared to 2012. Revenues in Rates were significantly lower than in 2012 due to
lower client activity reflecting weaker liquidity and ongoing market uncertainty. RMBS business was
impacted by the de-risking activity undertaken this year, exacerbated by weaker liquidity and continued
market uncertainty, resulting in significantly lower revenues compared to 2012. Commodities revenues
were significantly lower than in 2012, driven by reduced client activity and a challenging trading
environment. Despite increased volumes, revenues in Foreign Exchange were lower than in 2012 due to
lower volatility and margin compression. In 2013, Deutsche Bank was ranked number one in the
Euromoney Annual Foreign Exchange poll, for the ninth consecutive year. Revenues in Emerging Market,
Flow Credit and Credit Solutions were in line with 2012.
169
Sales & Trading (equity) net revenues in 2013 were € 2.7 billion, an increase of € 449 million, or 20 %
compared to 2012. Equity Trading Revenues increased and Equity Derivatives revenues increased
significantly from 2012 driven by higher client activity and an improved market environment. Prime Finance
revenues were in line with 2012.
Origination and Advisory generated revenues of € 2.8 billion for 2013, an increase of € 244 million, or 10 %,
compared to 2012. Debt Origination revenues were higher, and Equity Origination revenues were
significantly higher than in 2012, reflecting strong global market debt and equity issuance activity. Revenues
in Advisory were down from 2012 due to reduced fee pool and deal volumes. In 2013, Deutsche Bank was
ranked number one in Europe by share of Corporate Finance fees, and number one in Europe in Equity
Origination (all rankings sourced from Dealogic unless stated).
Loan products net revenues were € 1.2 billion for 2013, an increase of € 336 million, or 37 %, compared to
2012, due to lower overall hedge costs, a lower proportion of lending activity measured at fair value,
favorable movements in the credit spreads and continued strengthening in Deutsche Bank’s commercial
real estate franchise.
For 2013, net revenues from Other products were negative € 21 million, compared to positive € 547 million
in 2012. The decrease was mainly driven by non-recurrence of the positive impact in 2012 of a refinement
in the calculation methodology of the Debt Valuation Adjustment (DVA) implemented in 2012 on certain
derivative liabilities.
In provision for credit losses, CB&S recorded a net charge of € 190 million for 2013, an increase of
€ 109 million, or 134 % compared to 2012, driven by increased provisions taken in the Shipping portfolio.
Noninterest expenses for 2013 were € 10.4 billion, a decrease of € 2.1 billion compared to € 12.5 billion for
2012, which included an impairment of intangible assets. Excluding these charges, the decrease was driven
by lower compensation and non-compensation expenses reflecting the continued implementation of OpEx
measures, coupled with favorable foreign exchange rate movements, partially offset by increased litigation
costs.
Income before income taxes in 2013 was € 3.1 billion, compared to € 2.9 billion in 2012, driven by nonrecurrence of the impairment on intangible assets, lower compensation and non-compensation expenses,
partly offset by lower revenues and higher litigation provisions.
The following table sets forth the results of the Global Transaction Banking Corporate Division (GTB) for the
years ended December 31, 2013 and 2012, in accordance with Deutsche Bank’s management reporting
systems in effect on December 31, 2013.
in € m.
Net revenues:
Transaction Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
thereof:
Restructuring activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cost/income ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk-weighted assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average active equity(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pre-tax return on average active equity . . . . . . . . . . . . . . . . . . . . . . .
2013
Change in
fiscal year 2013 to
fiscal year 2012
2012
in € m.
in %
(audited)
4,069
0
4,069
315
2,648
4,200
0
4,200
208
3,326
(130)
0
(130)
107
(679)
(3)
N/M
(3)
52
(20)
54
57
0
1,107
65%
97,240
36,811
5,082
22%
40
73
0
665
79%
87,997
34,976
4,133
16%
13
(16)
0
441
N/M
9,243
1,835
949
N/M
33
(22)
N/M
66
(14) ppt
11
5
23
6 ppt
170
GTB’s profitability increased in 2013 compared to 2012 despite challenging market conditions. The results
in 2013 and 2012 included specific items related to the execution of the Strategy 2015+. Both periods
comprised cost-to-achieve related to the Operational Excellence (OpEx) Program as well as an impairment
of an intangible asset. In addition, 2012 included a litigation-related charge as well as the settlement of the
credit protection received from the seller as part of the turn-around measures of the commercial banking
activities in the Netherlands.
Net revenues in 2013 decreased by € 130 million, or 3 %, compared to 2012. 2012 included a settlement
payment related to the aforementioned turn-around measures in the Netherlands. 2013 contained a gain
from the sale of Deutsche Card Services. Throughout 2013, the macroeconomic environment proved to be
challenging with persistent low interest rates in core markets, and competitive pressures on margins.
Furthermore, foreign exchange movements compared to 2012 adversely impacted GTB’s result reported in
Euro. Despite the above headwinds and specific items, revenues in 2013 increased versus 2012 with
growth materializing in APAC and the Americas. Net revenues in Trade Finance were stable benefiting from
strong volumes which offset the impact from the competitive margin environment. Trust & Securities
Services showed a robust performance in this market environment based on higher volumes. Revenues in
Cash Management benefited from strong transaction volumes and client balances.
Provision for credit losses in 2013 increased by € 107 million, or 52 %, versus 2012. The increase was
primarily driven by a single client credit event in Trade Finance, partly offset by lower provisions in the
commercial banking activities in the Netherlands.
Noninterest expenses in 2013 decreased by € 679 million, or 20 %, compared to 2012, mainly driven by the
non-recurrence of the aforementioned litigation-related charge as well as lower turn-around charges in the
Netherlands. Cost-to-achieve related to the OpEx Program of € 109 million in 2013 increased by € 68 million
versus 2012. Excluding these charges, noninterest expenses in 2013 were lower than in 2012 due to the
non-recurrence of integration costs of the commercial banking activities in the Netherlands as well as the
continued focus on cost management. This was partly offset by an increase in expenses related to higher
business activity and the execution of the Strategy 2015+.
Income before income taxes in 2013 increased by € 441 million, or 66 %, compared to 2012 due to specific
items incurred in 2012.
The following table sets forth the results of the Deutsche Asset & Wealth Management Corporate Division
(DeAWM) for the years ended December 31, 2013 and 2012, in accordance with Deutsche Bank’s
management reporting systems in effect on December 31, 2013.
in € m.
Net revenues:
Management Fees and other recurring revenues . . . . . . . . . . . . . . .
Performance and trans. fees and other non recurring revenues . . .
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other product revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mark-to-market movements on policyholder positions in Abbey
Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013
Change in
fiscal year 2013 to
fiscal year 2012
2012
in € m.
in %
(audited)
2,453
917
545
327
2,301
884
496
369
151
34
48
(42)
7
4
10
(11)
494
4,735
420
4,470
74
266
18
6
Total noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
thereof:
Policyholder benefits and claims . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
3,929
18
4,297
5
(368)
29
(9)
460
170
14
1
782
414
104
202
1
154
46
66
(188)
0
628
11
63
(93)
60
N/M
Cost/income ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk-weighted assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
83%
72,613
12,553
5,855
13%
96%
78,103
12,429
5,907
3%
N/M
(5,490)
124
(52)
N/M
(13) ppt
(7)
1
(1)
11 ppt
171
The following table sets forth additional information in respect of the results of the Deutsche Asset &
Wealth Management Corporate Division set forth above.
in € bn.
Invested assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net new money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013
923
(13)
Change in
fiscal year 2013 to
fiscal year 2012
2012
in € bn.
in %
(unaudited)
920
3
0
(25)
12
(48)
1 Deutsche Bank defines invested assets as (a) assets it holds on behalf of customers for investment purposes and/or
(b) client assets that are managed by it. Deutsche Bank manages invested assets on a discretionary or advisory basis, or
these assets are deposited with Deutsche Bank.
In 2013, DeAWM benefitted from the increase in equity and bond markets. In addition, DeAWM’s initiative
to improve its operating platform delivered cost efficiencies.
In DeAWM net revenues for 2013 were € 4.7 billion, an increase of € 266 million, or 6 %, compared to
2012.
Management Fees and other recurring revenues increased in 2013 by € 151 million, or 7 %, compared to
2012 due to an increase of the average assets under management for 2013 following the positive market
conditions and margin improvements coming from a favorable shift in product mix from growth in
Alternatives and private clients. Mark-to-market movements on policyholder positions in Abbey Life
increased in 2013 by € 74 million, or 18 % versus 2012, largely offset in noninterest expenses. Net interest
income in 2013 increased by € 48 million, or 10 %, compared to 2012 due to strong growth in lending
revenues for securitized loans and commercial mortgages. Performance and transaction fees and other non
recurring revenues in 2013 were up € 34 million, or 4 %, compared to 2012 driven by higher performance
fees across Alternatives and actively managed funds. Other product revenues in 2013 decreased compared
to 2012 by € 42 million, or 11 % mainly due to a gain on the sale of Value Retail business in 2012.
Provision for credit losses in 2013 increased by € 5.0 million, or 29 %, compared to 2012 mainly resulting
from a specific client lending provision in Switzerland.
Noninterest expenses in 2013 were down € 368 million, or 9 %, compared to 2012 mainly due to
headcount reductions related to OpEx in 2013 as well as Scudder and IT related impairments in 2012, partly
offset by the aforementioned effect related to Abbey Life.
Income before income taxes was € 782 million in 2013, an increase of € 628 million compared to 2012.
This reflects a solid revenue performance, impairments taken in 2012 as well as Deutsche Bank’s progress
made on OpEx in 2013.
Invested assets in DeAWM were € 923 billion as of December 31¸ 2013, an increase of € 3 billion versus
December 31, 2012, mainly driven by market appreciation of € 40 billion, partly offset by foreign currency
effects, outflows and other movements. Net outflows were primarily driven by low margin institutional
clients partially offset by € 11 billion inflows from private clients.
172
The following table sets forth the results of the Private & Business Clients Corporate Division (PBC) for the
in € m.
Net revenues:
Global credit products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments, cards & account products . . . . . . . . . . . . . . . . . . .
Investment & insurance products . . . . . . . . . . . . . . . . . . . . . .
Other products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . .
thereof:
Impairment of intangible assets . . . . . . . . . . . . . . . . . . . . . .
Assets(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013
Change in
fiscal year 2013 to
fiscal year 2012
2012
in € m.
in %
(audited)
3,183
2,977
1,022
1,212
1,156
9,550
719
7,276
3,102
3,131
1,023
1,146
1,136
9,540
781
7,224
81
(155)
(2)
66
20
10
(62)
52
3
(5)
0
6
2
0
(8)
1
7
0
1,555
76%
265,359
73,001
13,976
11%
15
16
1,519
76%
282,427
72,695
12,177
12%
(8)
(15)
35
N/M
(17,068)
306
1,799
N/M
(54)
(97)
2
0 ppt
(6)
0
15
(1) ppt
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,704
128
3,237
339
3,741
174
3,098
468
(37)
(46)
139
(129)
(1)
(26)
4
(28)
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,052
248
1,139
666
1,971
211
1,217
543
81
37
(78)
122
4
17
(6)
22
Postbank:(3)
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,794
343
2,900
0
550
3,828
395
2,910
15
508
(34)
(52)
(10)
(15)
42
(1)
(13)
0
(97)
8
3 Contains the major core business activities of Postbank AG as well as BHW and norisbank.
173
The following table sets forth additional information in respect of the results of the Private & Business
Clients Corporate Division set forth above.
in € bn.
Invested assets(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net new money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013
282
(15)
Change in
fiscal year 2013 to
fiscal year 2012
2012 in € bn.
in %
(unaudited)
293
(11)
(4)
(10)
(6)
58
Despite a challenging environment PBC delivered a stable operating performance in 2013. The low interest
rate and the muted client investment activity in Germany remained challenging, while the lending
environment remained benign with provision for credit losses below the preceding years. European
markets, in which Deutsche Bank operates besides Germany, were marked by a reduced credit activity that
was compensated with increased business in Investment Products. The turmoils in the Chinese and Indian
financial markets, observed in the last months of 2013, did not materially impact Deutsche Bank’s
operations in these countries.
Net revenues in 2013 increased slightly by € 10 million as compared to 2012. Higher revenues from credit
products, investment & insurance products and other products were compensated by lower revenues from
deposits, related to the ongoing low interest rate environment and higher negative impact from purchase
price allocation on Postbank. Revenues from credit products increased in 2013 by € 81 million, or 3 %,
compared to 2012, mainly reflecting mortgage volume growth in Private & Commercial Banking and higher
consumer finance margins in Advisory Banking International. Revenues from investment & insurance
products increased in 2013 by € 66 million, or 6 %, compared to 2012, driven by higher transaction volumes
in Advisory Banking International and higher revenues from discretionary portfolio management in Private &
Commercial Banking. Revenues from other products increased in 2013 by € 20 million, or 2 %, compared
to 2012, benefitting from the performance of Hua Xia Bank, partly offset by several, mainly Postbank
related, one-off items. Net revenues from payments, cards and accounts remained stable.
Provision for credit losses in 2013 was € 719 million, down 8 % from € 781 million for 2012, driven by
Private & Commercial Banking and Postbank, reflecting an improved portfolio quality and credit
environment in Germany. Additionally, a credit of € 86 million in 2013 (2012: € 94 million) was recorded in
other interest income representing increases in the credit quality of Postbank loans recorded at fair value on
initial consolidation by the Group. Advisory Banking International had an increase in provisions for credit
losses, mainly caused by a difficult credit environment in Italy.
Noninterest expenses in 2013 increased by € 52 million, or 1 %, compared to 2012 due to higher costs-toachieve of € 108 million, related to Postbank integration and to OpEx, as well as higher cost allocations
from Infrastructure functions, which were mostly counterbalanced by savings, mainly driven by realization
of synergies from Postbank.
Income before income taxes in 2013 increased by € 35 million, or 2 %, versus 2012, despite higher coststo-achieve of € 108 million.
Invested assets in 2013 were down by € 11 billion compared to 2012, mainly driven by € 15 billion net
outflows, mostly in deposits, partly offset by € 4 billion market appreciation.
174
The following table sets forth the results of the Non-Core Operations Unit Corporate Division (NCOU) for
the years ended December 31, 2013 and 2012, in accordance with its management reporting systems in
effect on December 31, 2013.
in € m.
2013
867
Change in
fiscal year 2013 to
fiscal year 2012
2012
in € m.
in %
(audited)
1,054
(187)
(18)
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
thereof:
Net interest income and net gains (losses) on financial
assets/liabilities at fair value through profit or loss . . . . .
Total noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . .
thereof:
Policyholder benefits and claims . . . . . . . . . . . . . . . . . . . . .
Restructuring activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment of intangible assets(1) . . . . . . . . . . . . . . . . . . . .
Income (loss) before income taxes(2) . . . . . . . . . . . . . . . . . .
83
818
3,358
275
634
3,312
(191)
184
47
(70)
29
1
0
7
0
(3)
(3,306)
0
4
421
31
(2,923)
0
3
(421)
(34)
(383)
N/M
61
N/M
N/M
13
Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average active equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
N/M
54,224
48,483
9,833
(34%)
N/M
97,451
80,317
11,920
(25%)
N/M
(43,227)
(31,834)
(2,087)
N/M
N/M
(44)
(40)
(18)
(9) ppt
During 2013, NCOU accelerated its de-risking strategy and was accretive to capital in this period. Asset
sales included disposals of capital intensive wholesale products including investments that had been
transferred from Postbank, such as two separate commercial real estate portfolios. Asset de-risking in 2013
delivered net gains of € 454 million, reflecting an approach focused on identifying capital accretive
transactions in constructive market conditions.
Net revenues decreased in 2013 by € 187 million, or 18 % compared to 2012 driven by portfolio revenues
which have fallen as asset reductions have occurred. In 2013 such specific items included € 197 million
loss related to the expected sale of BHF-BANK, € 171 million negative effect from the first-time application
of Funding Valuation Adjustment (FVA), mortgage repurchase costs of € 122 million and the impact from
various impairments. The net gains generated in 2013 on disposals were offset by lower portfolio revenues
which have fallen as asset reductions have occurred. Net revenues in 2012 included negative effects
related to an impairment of € 257 million to Deutsche Bank’s previously held exposure in Actavis Group,
refinements of the CVA methodology of € 203 million and mortgage repurchase costs of € 233 million.
Provision for credit losses increased in 2013 by € 184 million, or 29 % in comparison to 2012, mainly due to
specific credit events seen across portfolios including exposure to European Commercial Real Estate.
Noninterest expenses in 2013 increased by € 47 million, compared to 2012. The movement included higher
litigation related costs offset by the non-recurrence of the impairment of intangible assets of € 421 million
reported in 2012.
The loss before income taxes in 2013 was € 3.3 billion, an increase of € 383 million compared to 2012.
Lower revenues and higher credit losses were the main drivers, but each period was impacted by the
timing and nature of specific items.
The CRR/CRD 4 pro forma fully loaded RWA equivalent capital demand declined during 2013 by € 48 billion,
underlining the firm commitment to de-risking the Bank.
175
Consolidation & Adjustments
The following table sets forth the results of Consolidation & Adjustments for the years ended
December 31, 2013 and 2012, in accordance with its management reporting systems in effect on
December 31, 2013.
in € m.
2013
Net revenues(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income (loss) before income taxes . . . . . . . . . . . . . . . . . . .
(929)
0
830
(15)
(1,744)
Change in
fiscal year 2013 to
fiscal year 2012
2012
in € m.
in %
(audited)
(975)
46
(5)
0
0
N/M
582
247
42
(65)
49
(76)
(1,493)
(251)
17
Assets(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk-weighted assets(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10,372
10,832
0
11,577
16,133
0
(1,205)
(5,300)
0
(10)
(33)
N/M
1 Net interest income and noninterest income.
2 Assets in C&A reflect corporate assets, such as deferred tax assets or central clearing accounts, outside the management
responsibility of the business segments.
3 Risk-weighted assets in C&A reflect corporate assets outside the management responsibility of the business segments,
primarily those corporate assets related to the Group’s pension schemes. The decrease of risk-weighted assets in 2013 was
primarily driven by the de-risking initiatives in Deutsche Bank’s pension assets. The main driver for the increase of riskweighted assets in 2012 in comparison to 2011 was the reclassification of risk-weighted assets related to gross pension
fund assets in 2012 to C&A.
4 Average active equity assigned to C&A reflects the residual amount of equity that is not allocated to the segments as
described in Note 4 “Business Segments and Related Information” to the consolidated financial statements of Deutsche
Bank for the fiscal year 2013, which are contained in the section “Financial Statements” of this Prospectus.
In 2013, C&A net revenues of negative € 929 million included negative € 330 million related to spreads for
capital instruments and a € 276 million loss due to the first time inclusion of a FVA on internal
uncollateralized derivatives between Treasury and CB&S. Also included were timing differences of negative
€ 249 million related to positions which were measured at fair value for management reporting purposes
and measured at amortized cost under IFRS. These effects will reverse over the life time of the positions.
Compared to 2012, these effects were significantly less negative, primarily reflecting decreased EUR/USD
basis risk movements and amortization back through P&L of preceding years’ losses.
Noninterest expenses of € 830 million in 2013 were up 42 % compared to 2012 mainly due to litigation
related charges, including € 528 million related to the settlement with Kirch Group. Partly offsetting was a
correction of historical internal cost allocation in 2013. Noninterest expenses in 2013 also included bank
levy related charges of € 197 million.
The decrease in noncontrolling interests in 2013, which were deducted from income before income taxes
of the divisions and reversed in C&A, was mainly due to Postbank.
Loss before income taxes in 2013 was € 1.7 billion in 2013, compared to € 1.5 billion in 2012. The increase
was primarily driven by the settlement with Kirch Group and the aforementioned loss due to the first time
inclusion of a FVA. Partly offsetting were lower negative effects from valuation and timing differences and
lower noninterest expenses.
Comparison of the Fiscal Years ended December 31, 2012 and 2011
The following discussion and analysis must be read in conjunction with Deutsche Bank’s consolidated
financial statements for the fiscal year 2013 and the financial information contained therein for the fiscal
years 2012 and 2011 and with Deutsche Bank’s consolidated financial statements for the fiscal year 2012
and the financial information contained therein for the fiscal years 2012 and 2011. The consolidated financial
statements as of and for the fiscal year ended December 31, 2013 are contained in the section “Financial
Statements” of this Prospectus. The consolidated financial statements as of and for the fiscal year ended
2012 are incorporated by reference into this Prospectus.
176
Net Interest Income
The following table sets forth data related to Deutsche Bank’s net interest income.
in € m.
Total interest and similar income . . . . . . . . . . . . . . . . . . . . . . .
Total interest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average interest-earning assets(1)(2) . . . . . . . . . . . . . . . . . . . . .
Average interest-bearing liabilities(1)(2) . . . . . . . . . . . . . . . . . . .
Gross interest yield(1)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gross interest rate paid(1)(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net interest spread(1)(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net interest margin(1)(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in
fiscal year 2012 to
fiscal year 2011
2012
2011
in € m.
in %
31,593
34,366
(2,773)
(8)
15,619
16,921
(1,302)
(8)
15,975
17,445
(1,470)
(8)
1,250,002
1,119,374
2.53%
1.40%
1.13%
1.28%
1,174,201
1,078,721
2.93%
1.57%
1.36%
1.49%
75,801
40,653
(0.40) ppt
(0.17) ppt
(0.23) ppt
(0.21) ppt
6
4
(14)
(11)
(17)
(14)
1 Unaudited.
2 Average balances for each year are calculated in general based upon month-end balances.
3 Gross interest yield is the average interest rate earned on Deutsche Bank’s average interest-earning assets.
4 Gross interest rate paid is the average interest rate paid on Deutsche Bank’s average interest-bearing liabilities.
5 Net interest spread is the difference between the average interest rate earned on average interest-earning assets and the
average interest rate paid on average interest-bearing liabilities.
6 Net interest margin is net interest income expressed as a percentage of average interest-earning assets.
The decrease in net interest income in 2012 of € 1.5 billion, or 8 %, to € 16.0 billion compared to
€ 17.4 billion in 2011, was primarily driven by lower interest income from CB&S trading assets resulting
from a lower interest rate environment and reduced asset volumes. Additionally the reduced asset base of
NCOU as a result of de-risking led to falls in interest income. The remaining decline was further impacted
by lower interest income in PBC based on a decrease of purchase price allocation (PPA) effects, following
the acquisition of Postbank. These developments contributed to a tightening of Deutsche Bank’s net
interest spread in 2012 by 23 basis points compared to 2011 and to a decline in its net interest margin in
2012 by 21 basis points compared to 2011.
Net Gains (Losses) on Financial Assets/Liabilities at Fair Value through Profit or Loss
The following table sets forth data related to Deutsche Bank’s net gains (losses) on financial assets/
liabilities at fair value through profit or loss.
in € m.
CB&S – Sales & Trading (equity) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CB&S – Sales & Trading (debt and other products) . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net gains (losses) on financial assets/liabilities at fair
value through profit or loss(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change in
fiscal year 2012 to
fiscal year 2011
2012
2011
in € m.
in %
991
312
679
N/M
4,508
4,348
160
4
(1,257) (1,564)
307
(20)
1,367
(372)
1,739
N/M
5,608
2,724
2,884
106
1 Audited.
Net gains on financial assets/liabilities at fair value through profit or loss increased for 2012 by € 2.9 billion
to € 5.6 billion compared to 2011. The majority of the increase arose outside Deutsche Bank’s Sales &
Trading business. Special factors were mainly gains on products held at fair value in CB&S related to the a
refinement in the calculation methodology of the DVA on certain derivative liabilities in CB&S, a decrease of
fair value losses at Abbey Life in DeAWM and higher net gains in Consolidation & Adjustments (C&A)
related to U.S. dollar/euro basis swaps designated as net investment hedges for capital investments in U.S.
entities. The increase of € 679 million of net gains on financial assets/liabilities at fair value through profit or
177
loss in Sales & Trading (equity) in 2012 compared to 2011 was due to volatile market conditions leading to
an increase in client trading activities and resulting in higher revenues from equity derivatives as well as
higher fair value gains in the Prime Finance business. The increase of € 160 million on net gains on financial
assets/liabilities at fair value through profit or loss in Sales & Trading (debt and other products) in 2012
compared to 2011 was mainly driven by higher revenues in the Flow Credit business, reflecting improved
credit market conditions and higher revenues in the Rates business, driven by strong client activity. This
was partially offset by lower revenues in the Money Markets business due to reduced volatility. The NCOU
showed a decrease in net losses due to a smaller asset base as a result of de-risking activity and fair value
movements on the non-core assets particularly in credit spreads.
Net Interest Income and Net Gains (Losses) on Financial Assets/Liabilities at Fair Value through Profit or
Loss
The following table sets forth information on net interest income and net gains or losses on financial assets
and liabilities at fair value through profit or loss by corporate division and by product within CB&S.
in € m.
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net gains (losses) on financial assets/liabilities at fair value
through profit or loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012
15,975
Change in
fiscal year 2012 to
fiscal year 2011
2011
in € m.
in %
(audited)
17,445
(1,470)
(8)
5,608
2,724
2,884
106
21,583
20,169
1,414
7
Breakdown by Corporate Division/product(1):
Sales & Trading (equity) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sales & Trading (debt and other products) . . . . . . . . . . . . . . . . . .
1,732
8,226
1,504
8,121
228
105
15
1
Total Sales & Trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loan products(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Remaining products(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate Banking & Securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Global Transaction Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deutsche Asset & Wealth Management . . . . . . . . . . . . . . . . . . . . . . .
Private & Business Clients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidation & Adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9,958
182
589
10,729
2,016
1,974
6,220
275
369
9,625
185
199
10,010
1,996
991
6,625
588
(42)
333
(3)
390
719
20
983
(405)
(313)
411
3
(2)
196
7
1
99
(6)
53)
N/M
21,583
20,169
1,414
7
1 This breakdown reflects net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or
loss only. For a discussion of the corporate divisions’ total revenues by product please refer to Note 5 “Net Interest Income
and Net Gains (Losses) on Financial Assets/Liabilities at Fair Value through Profit or Loss” to the consolidated financial
statements of Deutsche Bank as of and for the fiscal year ended December 31, 2013, which are contained in the section
“Financial Statements” of this Prospectus.
2 Includes the net interest spread on loans as well as the fair value changes of credit default swaps and loans designated at
fair value through profit or loss.
3 Includes net interest income and net gains (losses) on financial assets/liabilities at fair value through profit or loss of
origination, advisory and other products.
Corporate Banking & Securities (CB&S). Combined net interest income and net gains (losses) on financial
assets/liabilities at fair value through profit or loss were € 10.7 billion in 2012, an increase of € 719 million,
or 7 %, compared to 2011. The increase in Sales & Trading (equity) in 2012 was primarily driven by Equity
Derivatives revenues impacted by volatile market conditions. Another contributor to the increase in Sales &
Trading (equity) was Equity Trading with higher net interest income due to market share gains resulting in
higher volumes offsetting more difficult market conditions. In Sales & Trading (debt and other products) the
main drivers for the increase of net interest income and net gains (losses) on financial assets/liabilities at fair
value through profit or loss were higher Flow Credit revenues reflecting improved credit market conditions
and higher Rates revenues driven by strong client activity. This was partially offset by lower revenues in
Money Markets due to lower volatility. The increase of net gains in the remaining products held at fair value
in CB&S arose relating to the aforementioned refinement in calculation methodology of the DVA on certain
derivative liabilities.
178
Global Transaction Banking (GTB). Combined net interest income and net gains (losses) on financial assets/
liabilities at fair value through profit or loss were € 2.0 billion in 2012, an increase of € 20 million, or 1 %,
compared to 2011. Net interest income in 2012 increased compared to 2011, driven by strong performance
across the GTB product spectrum and regions benefiting from strong volumes. The gain was offset by a
decrease in the interest income of the commercial banking activities in the Netherlands, primarily due to the
depressed interest rate environment.
Deutsche Asset & Wealth Management (DeAWM). Combined net interest income and net gains (losses) on
financial assets/liabilities at fair value through profit or loss were € 2.0 billion in 2012, an increase of
€ 983 million, or 99 %, compared to 2011. The increase in net interest income and net gains (losses) on
financial assets/liabilities at fair value through profit or loss was mainly attributable to a net gain in Abbey
Life offset in noninterest expenses.
Private & Business Clients (PBC). Combined net interest income and net gains (losses) on financial assets/
compared to 2011. The combined net interest income and net gains (losses) on financial assets/liabilities at
fair value through profit or loss decreased primarily due to the lower purchase price allocation effects as
well as lower interest income at Postbank.
Non-Core Operations Unit (NCOU). Combined net interest income and net gains (losses) on financial assets/
liabilities at fair value through profit or loss were € 275 million in 2012, a decrease of € 313 million, or 53 %,
compared to 2011. The main driver for the decrease was the smaller asset base across all products in the
NCOU as a result of de-risking activity and a reduction in fair value losses predominantly due to credit
spread movements.
Consolidation & Adjustments. Combined net interest income and net gains (losses) on financial assets/
liabilities at fair value through profit or loss were € 369 million in 2012, compared with a negative
€ 42 million in 2011. The increase was mainly a result of positive effects related to timing differences from
different accounting methods used for management reporting and IFRS.
Provision for Credit Losses
Provision for credit losses recorded in 2012 decreased by € 118 million to € 1.7 billion. This reduction was
primarily driven by improvements in the quality of the PBC Germany portfolio, partly offset by higher
provisions for IAS 39 reclassified assets held by NCOU.
Remaining Noninterest Income
The following table sets forth information on the remaining noninterest income.
in € m.
2012
Commissions and fee income(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net gains (losses) on financial assets available for sale . . . . . . . . . . . . . . . . . . . . .
Net income (loss) from equity method investments . . . . . . . . . . . . . . . . . . . . . . .
Other income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total remaining noninterest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11,809
301
163
(120)
12,153
Change in
fiscal year 2012 to
fiscal year 2011
2011
in € m.
in %
(audited)
11,878
123
(264)
1,322
13,059
(69)
178
427
(1,442)
(906)
(1)
145
N/M
N/M
(7)
1 Includes:
2012
2011
in € m.
in %
Commissions and fees from fiduciary activities:
Commissions for administration(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commissions for assets under management(1) . . . . . . . . . . . . . . . . . . . . . . . . .
Commissions for other securities business(1) . . . . . . . . . . . . . . . . . . . . . . . . . .
449
2,609
239
491
2,760
207
(42)
(151)
32
(9)
(5)
15
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,297
3,458
(161)
(5)
Commissions, broker’s fees, mark-ups on securities underwriting and other
securities activities:
Underwriting and advisory fees(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Brokerage fees(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,318
1,526
2,118
1,882
200
(356)
9
(19)
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,844
4,000
(156)
(4)
Fees for other customer services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,667
4,421
246
6
Total commissions and fee income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11,809
11,878
(69)
(1)
1 Unaudited.
179
Commissions and fee income. Total Commissions and fee income was € 11.8 billion in 2012, a decrease of
€ 69 million compared to 2011. Advisory fees increased driven by Global Finance as well as by DeAWM
Alternatives, reflecting increased deal activity. Underwriting fees were in line with 2011 with an increase in
Rates and Credit Trading, reflecting higher corporate debt issuance, offset by lower fees from Equity
Trading. Other customer services fees slightly increased mainly due to Trade Finance & Cash Management
Corporates in GTB as well as Rates and Credit Trading in CB&S. Both Underwriting and advisory fees as
well as Other customer services fees, however were offset by lower Brokerage fees, especially in PBC
Products, due to muted client investment activities, and in Global Equities.
Net gains (losses) on financial assets available for sale. Net gains on financial assets available for sale were
€ 301 million in 2012, versus € 123 million in 2011. The net gain in 2012 mainly included gains on the sale
of EADS shares of € 152 million and on the sale of the Structured Credit portfolio in the NCOU. These gains
were partially offset by specific impairments and realized losses on sale from de-risking activity in the
NCOU. The net gain in 2011 mainly included disposal gains of approximately € 485 million and a one-time
positive impact of € 263 million related to Deutsche Bank’s stake in Hua Xia Bank, partly offset by an
impairment charge of € 527 million on Greek government bonds.
Net income (loss) from equity method investments. Net gains from equity method investments were
€ 163 million in 2012, versus a net loss of € 264 million in 2011. The net income in 2012 included a positive
equity pick up of € 311 million from Deutsche Bank’s investment in Hua Xia Bank, partly offset by an
impairment charge of € 257 million related to Actavis Group. The net loss in 2011 included a positive equity
pick up of € 154 million related to Deutsche Bank’s stake in Hua Xia Bank and an impairment charge of
€ 457 million related to Actavis Group.
Other income (loss). Other income was negative € 120 million in 2012 versus positive € 1.3 billion in 2011.
The lower other income in 2012 was largely due to significant losses from derivatives qualifying for hedge
accounting offset by revenues related to The Cosmopolitan of Las Vegas and Maher Terminals as well as
income from the settlement of credit protection received from the seller related to acquired commercial
banking activities in the Netherlands. In 2011, other income mainly included significant gains from
derivatives qualifying for hedge accounting and revenues related to The Cosmopolitan of Las Vegas.
Noninterest Expenses
The following table sets forth information on the noninterest expenses.
in € m.
Compensation and benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General and administrative expenses(1) . . . . . . . . . . . . . . . . . . . . . . . .
Policyholder benefits and claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Restructuring activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012
13,490
15,017
414
1,886
394
31,201
Change in
fiscal year 2012 to
fiscal year 2011
2011
in € m.
In %
(audited)
13,135
355
3
12,657
2,360
19
207
207
100
0
1,886
N/M
0
394
N/M
25,999
5,202
20
1 Includes:
2012
IT costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Occupancy, furniture and equipment expenses . . . . . . . . . . . . . . . . . . . . . . . . .
Professional service fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Communication and data services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Travel and representation expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payment, clearing and custodian services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Marketing expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Consolidated investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other expenses(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,547
2,115
1,852
907
518
609
362
760
5,347
Total general and administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . . .
15,017
1
180
2011
in € m.
(audited)
2,194
353
2,072
43
1,621
231
849
58
539
(21)
504
105
410
(48)
652
108
3,815
1,532
12,657
2,360
in %
16
2
14
7
(4)
21
(12)
17
40
19
Includes litigation related expenses of € 3.0 billion in 2013 and of € 2.6 billion in 2012. 2011 included specific charges in
CB&S (€ 655 million litigation related expenses and a specific charge of € 310 million relating to the impairment of a
German VAT claim) and the first time consideration of € 247 million for the German and U.K. bank levies.
Compensation and benefits. In 2012, compensation and benefits were up by € 355 million, or 3 %,
compared to 2011. Half of the increase in 2012 was attributable to Variable Compensation mainly due to a
decrease in the deferral rate from 61 % to 47 % which led to an increase of the cash bonus component.
This was partly offset by deferred award amortization based on a reduced deferred compensation charge
for employees eligible for career retirement. The other significant driver of the increase was the negative
impact of FX translation.
General and administrative expenses. General and administration expenses increased by € 2.4 billion, or
19 %, from € 12.7 billion in 2011 to € 15.0 billion in 2012. The main driver for the increase were new
litigation provisions as well as items related to the turnaround measures in the Bank’s commercial banking
activities in the Netherlands; both shown in other expenses. Further increases resulted from higher IT
costs, including the write-down of the technology platform “NPP”, higher depreciation on IT, and the new
“Magellan” platform in PBC. Professional service fees increased due to higher legal costs relating to
litigations and costs related to the strategic review in DeAWM. Higher costs in consolidated investments
were driven by The Cosmopolitan of Las Vegas and Maher Terminals.
Policyholder benefits and claims. Policyholder benefits and claims in 2012 were € 414 million, an increase
of € 207 million compared to 2011 and were solely driven by insurance-related charges regarding the Abbey
Life business.
Impairment of intangible assets. In 2012, impairment charges on goodwill and other intangible assets were
€ 1.9 billion. They included impairments of € 1.2 billion for CB&S prior to re-segmentation. Post
segmentation reviews resulted in a further € 421 million of goodwill impairments in the newly established
NCOU. Impairments of other intangible assets included € 202 million in DeAWM and € 73 million in GTB
relating to commercial banking activities in the Netherlands. There was no charge for impairment of
intangible assets in 2011.
Restructuring. Restructuring activities were € 394 million in 2012. Restructuring activities in 2012 led to
lower Salary and Benefit costs in the fourth quarter 2012. There were no such costs in 2011.
Income Tax Expense
In 2012, the income tax expense was € 498 million, which led to an effective tax rate of 61 % compared to
an income tax expense of € 1.1 billion and an effective tax rate of 20 % in 2011. The effective tax rate in
2012 was mainly impacted by expenses that were not deductible for tax purposes which included
impairments of goodwill. The effective tax rate in 2011 primarily benefited from changes in the recognition
and measurement of deferred taxes, a favorable geographic mix of income and the partial tax exemption of
net gains related to Deutsche Bank’s stake in Hua Xia Bank.
The following discussion of the results of Deutsche Bank’s business segments is based on their
presentation in Deutsche Bank’s consolidated financial statements for the fiscal year 2013.
The criterion for segmentation into divisions is Deutsche Bank’s organizational structure as it existed at
December 31, 2013. Segment results were prepared in accordance with Deutsche Bank’s management
181
The following table presents the results of the group divisions for the fiscal years ended December 31,
2012 and 2011.
2012
(audited)
in € m.
Net revenues(1) . . . . . . . .
losses . . . . . . . . . . . . . .
Total noninterest
expenses . . . . . . . . . . .
thereof:
and amortization . . . .
Severance payments . .
Policyholder benefits
and claims . . . . . . . . .
Restructuring
activities . . . . . . . . . .
Impairment of
intangible assets . . . .
Noncontrolling
interests . . . . . . . . . . . .
income taxes . . . . . . . .
Deutsche
Corporate
Global
Asset &
Private & Non-Core
Total
Wealth
Total
Unit
15,448
4,200
4,470(4)
9,540
1,054
34,711
(975)
33,736
81
208
18
781
634
1,721
0
1,721
12,459
3,326
4,297
7,224
3,312
30,618
582
31,201
5
167
0
24
0
42
0
249
2
3
8
486
17
58
25
543
0
0
414
0
0
414
0
414
244
40
104
0
4
392
0
394
1,174
73
202
15
421
1,886
0
1,886
17
0
1
16
31
65
(65)
0
2,891
665
154
1,519
(2,923)
2,307
(1,493)
814
Cost/income ratio . . . . . . .
81%
Assets(2)(3) . . . . . . . . . . . . . 1,464,721
to long-lived assets . . . .
15
Risk-weighted assets . . . . 117,056
20,790
Average active equity(5) . .
active equity . . . . . . . . .
14%
Post-tax return on
average active
equity(6) . . . . . . . . . . . . .
9%
79%
87,997
96%
76%
78,103 282,427
N/M
97,451
88 %
2,010,699
N/M
11,577
92%
2,022,275
1
34,976
4,133
1
12,429
5,907
140
72,695
12,177
0
80,317
11,920
157
317,472
54,927
477
16,133
0
634
333,605
54,927
16%
3%
12%
(25)%
4%
N/M
1%
10%
2%
8%
(16)%
3%
N/M
1%
1 Includes:
Net interest
income . . . . . . . .
5,208
1,964
1,033
6,115
1,531
15,851
123
15,975
Net income (loss)
from equity
method
investments . . . .
131
5
6
312
(295)
159
4
163
2 Includes:
Equity method
investments . . . .
751
46
131
2,303
307
3,538
39
3,577
5 Effective July 1, 2013, the definition of active equity has been aligned to the CRR/CRD 4 framework. Under the revised
effect.
182
2011
(audited)
in € m.
Net revenues(1) . . . . . . . . . .
losses . . . . . . . . . . . . . . . .
Total noninterest
expenses . . . . . . . . . . . . .
thereof:
and amortization . . . . . .
Severance payments . . . .
claims . . . . . . . . . . . . . .
Restructuring activities . .
assets . . . . . . . . . . . . . .
Noncontrolling
interests . . . . . . . . . . . . . .
income taxes . . . . . . . . .
Deutsche
Corporate
Global
Asset &
Private & Non-Core
Total
Wealth
Total
Unit
13,899
3,816
4,278(4)
10,397
877
33,267
(39)
33,228
50
198
16
1,185
391
1,840
(1)
1,839
10,144
2,588
3,321
7,132
2,561
25,747
252
25,999
35
79
6
14
24
29
129
218
272
60
466
401
442
102
908
503
0
0
0
0
207
0
0
0
0
0
207
0
0
0
207
0
0
0
0
0
0
0
0
0
22
0
0
178
14
213
(213)
0
3,684
1,029
941
1,902(3)
(2,089)
5,467
(77)
5,390
Cost/income ratio(5) . . . . . . .
73 %
Assets(2)(5) . . . . . . . . . . . . . . . 1,580,190
43
Average active equity . . . . .
13,604
active equity . . . . . . . . . . .
27 %
active equity(6) . . . . . . . . .
19 %
68 %
97,423
78 %
69 %
68,848 269,986
N/M
134,812
77 %
2,151,260
N/M
12,843
78 %
2,164,103
7
35,127
3,811
37
14,625
5,656
181
78,637
12,081
98
103,812
11,447
366
379,361
46,599
487
1,884
3,850
853
381,246
50,449
27 %
17 %
16 %
(18) %
12 %
(2) %
10 %
19 %
12 %
11 %
(13) %
8%
N/M
8%
1 Includes:
Net interest
income . . . . . . . . . .
5,787
1,906
805
6,594
2,152
17,244
201
17,445
Net income (loss)
from equity
method
23
2
41
140
(472)
(266)
2
(264)
2 Includes:
Equity method
731
43
154
2,043
751
3,722
38
3,759
3 Includes a net positive impact of € 236 million related to the stake in Hua Xia Bank (PBC).
183
The following table sets forth the results of the Corporate Banking & Securities Corporate Division (CB&S)
for the years ended December 31, 2012 and 2011, in accordance with Deutsche Bank’s management
Change in
fiscal year 2012 to
fiscal year 2011
2011
in € m.
in %
(audited)
in € m.
2012
Net revenues:
Sales & Trading (debt and other products) . . . . . . . . . . . . . . . .
Sales & Trading (equity) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Origination (debt) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Origination (equity) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Advisory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Loan products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9,190
2,288
1,417
518
590
899
547
15,448
8,539
2,235
1,055
559
621
930
(39)
13,899
651
53
362
(41)
(31)
(31)
586
1,549
8
2
34
(7)
(5)
(3)
N/M
11
Total Noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . .
thereof:
Restructuring activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment of intangible assets . . . . . . . . . . . . . . . . . . . . . . .
Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . .
81
12,459
50
10,144
31
2,315
62
23
244
1,174
17
2,891
0
0
22
3,684
244
1,174
(5)
(793)
N/M
N/M
(23)
(22)
Cost/income ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk-weighted assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average active equity(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pre-tax return on average active equity . . . . . . . . . . . . . . . . . . .
81 %
1,464,721
117,056
20,790
14 %
73 %
1,580,190
147,161
13,604
27 %
N/M
(115,469)
(30,105)
7,186
N/M
8 ppt
(7)
(20)
53
(13) ppt
For 2012, Sales & Trading (debt and other products) net revenues were € 9.2 billion, an increase of
€ 651 million, or 8 %, compared to 2011 despite a negative impact of € 166 million relating to Credit
Valuation Adjustments (CVAs) in the fourth quarter 2012 due to a refinement in the calculation methodology
and RWA mitigation. Revenues in Rates and Credit Flow Trading in 2012 were significantly higher than in
2011, driven by significantly higher Flow Credit revenues reflecting improved credit market conditions, and
by higher Rates revenues reflecting strong client activity, particularly in Europe. Revenues in Structured
Finance in 2012 were higher than in 2011, reflecting a strong client demand, particularly for CMBS
products. In contrast, despite increased volumes, Foreign Exchange revenues in 2012 were lower than in
2011 as a result of margin compression. Revenues in Money Markets in 2012 were lower than in 2011 due
to lower volatility. In Commodities and RMBS, revenues were also lower in 2012 compared to 2011.
Revenues in Emerging Markets were in line with 2011.
Sales & Trading (equity) generated revenues of € 2.3 billion in 2012, a slight increase compared to 2011.
Equity Derivatives revenues in 2012 were significantly higher than in 2011, which was negatively impacted
by volatile market conditions. Equity Trading revenues in 2012 were in line with 2011, with market share
gains offsetting more difficult market conditions. In Prime Finance, revenues in 2012 were lower than in
2011, driven by lower margins.
Origination and Advisory revenues increased in 2012 to € 2.5 billion, up € 290 million compared to 2011. In
2012, Deutsche Bank was ranked number five globally, by share of Corporate Finance fees, and number
one in Europe. In Advisory revenues in 2012 were down in comparison to 2011. In 2012, Deutsche Bank
was ranked number six globally and number two in Europe. Debt Origination revenues increased due to
corporate debt issuance, while Equity Origination revenues decreased, reflecting an industry wide decline in
IPO activity in the first half of 2012. In 2012, Deutsche Bank was ranked number five globally for Equity
Origination, and number two in Europe. (All ranks from Dealogic unless otherwise stated).
184
For 2012, net revenues from Other products were € 547 million, compared to negative € 39 million in 2011.
The increase was driven by € 516 million relating to a refinement in the calculation methodology of DVA
implemented in 2012 on certain derivative liabilities.
Noninterest expenses in 2012 were € 12.5 billion, a substantial increase of € 2.3 billion compared to
€ 10.1 billion for 2011. Approximately half of the increase related to the impairment of intangible assets.
The increase also included € 315 million cost-to-achieve related to OpEx. Additionally, noninterest expenses
in 2012 were impacted by adverse foreign exchange rate movements and higher litigation related charges
than in 2011. These increases were partially offset by the absence of a specific charge of € 310 million for a
German VAT claim in 2011, and lower non-performance related compensation costs reflecting the
implementation of OpEx.
Income before income taxes in 2012 was € 2.9 billion, compared to € 3.7 billion in 2011, driven by the
impairment on intangible assets, higher litigation related charges and cost-to-achieve related to OpEx, partly
offset by higher revenues, the absence of the aforementioned German VAT claim in 2011 and OpEx related
cost savings.
The following table sets forth the results of the Global Transaction Banking Corporate Division (GTB) for the
Change in
fiscal year 2012 to
fiscal year 2011
2011
in € m.
in %
(audited)
in € m.
2012
Net revenues:
Transaction Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4,200
0
4,200
3,816
0
3,816
384
0
384
10
N/M
10
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
thereof:
Impairment of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
208
3,326
198
2,588
10
738
5
29
40
73
0
665
0
0
0
1,029
40
73
0
(364)
N/M
N/M
N/M
(35)
Cost/income ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk-weighted assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average active equity(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pre-tax return on average active equity . . . . . . . . . . . . . . . . . . . . . . . .
79 %
87,997
34,976
4,133
16 %
68 %
97,423
35,127
3,811
27 %
N/M
(9,426)
(151)
322
N/M
11 ppt
(10)
0
8
(11) ppt
GTB’s results in 2012 included specific items as mentioned under “—Comparison of the Fiscal Years ended
December 31, 2013 and 2012—Results of Operations by Segment—Global Transaction Banking Corporate
Division” above.
Net revenues in 2012 increased significantly by € 384 million, or 10 %, compared to 2011. 2012 included a
settlement payment related to the turn-around measures of the commercial banking activities in the
Netherlands. Despite this specific item, revenues increased driven by a strong performance across
products and regions benefiting from strong volumes while interest rate levels continued to be low. Trade
Finance profited from high demand for international trade and financing products. Trust & Securities
Services grew on the back of higher fee income especially in the Corporate Trust business in the United
States. Cash Management benefited from a sustained “flight-to-quality” trend, resulting in strong
transaction volumes and higher deposit balances, as well as from liquidity management.
185
Provision for credit losses in 2012 increased by € 10 million, or 5 %, versus 2011, which was driven by the
commercial banking activities acquired in the Netherlands. This was partly offset by lower provisions in the
Trade Finance business.
Noninterest expenses in 2012 were up € 738 million, or 29 %, compared to 2011, mainly driven by the
aforementioned turn-around measures as well as a litigation-related charge. Excluding these charges,
noninterest expenses in 2012 were above 2011, reflecting higher expenses related to compensation and
higher business activity. This was partly offset by the non-recurrence of higher amortization of an upfront
premium paid for credit protection received in 2011.
Income before income taxes in 2012 decreased by € 364 million, or 35 %, compared to 2011. The decrease
resulted from the aforementioned turn-around measures as well as the litigation-related charge.
The following table sets forth the results of the Deutsche Asset & Wealth Management Corporate Division
(DeAWM) for the years ended December 31, 2012 and 2011, in accordance with Deutsche Bank’s
management reporting systems in effect on December 31, 2013.
in € m.
Net revenues:
Management Fees and other recurring revenues . . . . . . . . . . . . . . . .
Performance and trans. fees and other non recurring revenues . . . .
Net interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other product revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mark-to-market movements on policyholder positions in Abbey
Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012
Change in
fiscal year 2012 to
fiscal year 2011
2011
in € m.
in %
(audited)
2,301
884
496
369
2,315
927
348
510
(14)
(43)
148
(141)
(1)
(5)
43
(28)
420
4,470
178
4,278
242
192
136
4
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
thereof:
Policyholder benefits and claims . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
4,297
16
3,321
2
976
13
29
414
104
202
1
154
207
0
0
0
941
207
104
202
1
(787)
100
N/M
N/M
N/M
(84)
Cost/income ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk-weighted assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average active equity(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pre-tax return on average active equity . . . . . . . . . . . . . . . . . . . . . . . .
96 %
78,103
12,429
5,907
3%
78 %
68,848
14,625
5,656
17 %
N/M
9,255
(2,196)
251
N/M
19 ppt
13
(15)
4
(14) ppt
The following table sets forth additional information in respect of the results of the Deutsche Asset &
Wealth Management Corporate Division set forth above.
in € bn.
Invested assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net new money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
2012
920
(25)
Change in
fiscal year 2012 to
fiscal year 2011
2011
in € bn.
in %
(unaudited)
897
23
3
(20)
(5)
25
Deutsche Bank defines invested assets as (a) assets it holds on behalf of customers for investment purposes and/or
186
Net revenues in 2012 increased slightly by € 192 million, or 4 %, compared to € 4.3 billion in 2011.
Revenues in Mark-to-market movements on policyholder positions in Abbey Life increased in 2012 by
€ 242 million, or 136 %, compared to 2011, offset in noninterest expenses.
Net interest income revenues in 2012 increased by € 148 million, or 43 % compared to 2011, reflecting
various product initiatives targeting stable funding. Other product revenues in 2012 decreased compared to
2011 by € 141 million, or 28 % driven by one off gains on sales in 2011 in RREEF and reduced demand for
hedge fund products. Performance and transaction fees and other non recurring revenues in 2012
decreased by € 43 million, or 5 %, compared to 2011, due to decreased client activity. Management Fees
and other recurring revenues in 2012 decreased slightly by € 14 million, or 1 %, compared to 2011.
Provision for credit losses in 2012 increased by € 2.0 million, or 13 %, compared to 2011, mainly resulting
from the U.S. lending businesses.
Noninterest expenses in 2012 were up € 976 million, or 29 %, compared to 2011, mainly due to the
aforementioned effect related to Abbey Life, € 202 million of impairments related to Scudder, € 90 million
of IT-related impairments, € 104 million in costs-to-achieve related to OpEx, costs incurred from the
strategic review and litigation-related charges.
Income before income taxes was € 154 million in 2012, a decrease of € 787 million compared to 2011.
Higher revenues were more than offset by increased costs due to aforementioned restructuring activities
as well as impairment.
Invested assets in DeAWM were € 920 billion as of December 31, 2012, an increase of € 23 billion versus
December 31, 2011, mainly driven by market appreciation of € 55 billion, offset by outflows of € 25 billion
and foreign currency movements of € 7 billion. The private bank attracted inflows of € 15 billion for 2012,
offset by outflows in asset management, particularly from the institutional business which was impacted by
the strategic review.
187
The following table sets forth the results of the Private & Business Clients Corporate Division (PBC) for the
in € m.
Net revenues:
Global credit products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Payments, cards & account products . . . . . . . . . . . . . . . . . . . . . . .
Investment & insurance products . . . . . . . . . . . . . . . . . . . . . . . . . .
Other products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012
Change in
fiscal year 2012 to
fiscal year 2011
2011
in € m.
in %
(audited)
3,102
3,131
1,023
1,146
1,136
9,540
3,022
3,166
991
1,257
1,961
10,397
80
(35)
32
(111)
(825)
(857)
3
(1)
3
(9)
(42)
(8)
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
thereof:
Impairment of intangible assets . . . . . . . . . . . . . . . . . . . . . . . . .
Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income (loss) before income taxes . . . . . . . . . . . . . . . . . . . . . . .
781
7,224
1,185
7,132
(404)
92
(34)
1
15
16
1,519
0
178
1,902
15
(162)
(383)
N/M
(91)
(20)
Cost/income ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk-weighted assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average active equity(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pre-tax return on average active equity . . . . . . . . . . . . . . . . . . . . .
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . .
76 %
282,427
72,695
12,177
12 %
69 %
269,986
78,637
12,081
16 %
N/M
12,441
(5,942)
96
N/M
7 ppt
5
(8)
1
(3) ppt
3,741
174
3,098
468
3,716
252
2,942
522
25
(78)
156
(54)
1
(31)
5
(10)
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,971
211
1,217
543
1,996
176
1,195
626
(25)
35
22
(83)
(1)
20
2
(13)
Postbank:(3)
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3,828
395
2,910
15
508
4,685
758
2,995
178
754
(857)
(363)
(85)
(163)
(246)
(18)
(48)
(3)
(92)
(33)
3 Contains the major core business activities of Postbank AG as well as BHW and norisbank.
188
The following table sets forth additional information in respect of the results of the Private & Business
Clients Corporate Division set forth above.
in € bn.
Invested assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net new money . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012
293
(10)
Change in
fiscal year 2012 to
fiscal year 2011
2011
in € bn.
in %
(unaudited)
296
(3)
(1)
8
18
N/M
Net revenues in 2012 decreased by € 857 million, or 8 %, versus 2011, mainly driven by the non-recurrence
of a positive one-time effect of € 263 million related to Deutsche Bank’s stake in Hua Xia Bank in 2011 and
negative impact from purchase price allocation on Postbank. The remaining revenue decrease in other
products was related to a low interest rate environment and lower revenues from investment securities
due to a targeted accelerated reduction of risk positions. Net revenues from investment & insurance
products in 2012 decreased by € 111 million, or 9 %, compared to 2011 mainly in Private & Commercial
Banking, driven by muted client investment activity. Net revenues from credit products in 2012 increased
by € 80 million, or 3 %, compared to 2011 mainly in Advisory Banking International, driven by both higher
margins and volumes. Net revenues from deposits in 2012 decreased slightly by € 35 million, or 1 %,
compared to 2011, driven by lower margins. Net revenues from payments, cards and accounts in 2012
increased by € 32 million, or 3 %, compared to 2011.
Provision for credit losses in 2012 was € 781 million, down from € 1,185 million for 2011, mainly driven by
Postbank. Additionally, a credit of € 94 million in 2012 (2011: € 402 million) was recorded in other interest
income representing increases in the credit quality of Postbank loans recorded at fair value on initial
consolidation by the Group. Excluding Postbank, provision for credit losses further decreased in 2012,
primarily attributable to lower provisions in Private & Commercial Banking reflecting an improved portfolio
quality.
Noninterest expenses in 2012 increased by € 92 million, or 1 %, compared to 2011 due to higher costs-toachieve of € 134 million, related to Postbank integration and to OpEx.
Income before income taxes in 2012 decreased by € 383 million, or 20 %, versus 2011, reflecting in large
part an increase in costs-to-achieve of € 134 million.
Invested assets were down in 2012 compared to 2011, mainly driven by € 10 billion net outflows, mostly in
deposits, partly offset by € 7 billion in market appreciation.
189
The following table sets forth the results of the Non-Core Operations Unit Corporate Division (NCOU) for
the years ended December 31, 2012 and 2011, in accordance with its management reporting systems in
effect on December 31, 2013.
in € m.
2012
Net revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
thereof:
Net interest income and net gains (losses) on financial assets/
liabilities at fair value through profit or loss . . . . . . . . . . . . . . . .
Total noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
thereof:
Policyholder benefits and claims . . . . . . . . . . . . . . . . . . . . . . . . . .
Restructuring activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Impairment of intangible assets(1) . . . . . . . . . . . . . . . . . . . . . . . . .
1,054
Change in
fiscal year 2012 to
fiscal year 2011
2011
in € m.
in %
(audited)
877
177
20
275
634
3,312
588
391
2,561
(313)
243
751
(53)
62
29
0
4
421
31
0
0
0
14
0
4
421
17
N/M
N/M
N/M
121
Income (loss) before income taxes(2) . . . . . . . . . . . . . . . . . . . . . . .
(2,923)
(2,089)
(834)
40
Cost/income ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk-weighted assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Average active equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
N/M
97,451
80,317
11,920
(25 %)
N/M
134,812
103,812
11,447
(18 %)
N/M
(37,361)
(23,495)
473
N/M
N/M
(28)
(23)
4
(6) ppt
Net revenues in 2012 increased by € 177 million, or 20 %, compared to 2011. In 2012 specific items
included negative effects related to refinements of the CVA methodology of € 203 million, mortgage
repurchase costs of € 233 million, losses from sales of capital intensive securitization positions and a
number of impairments. Revenues in 2011 were impacted by impairment charges of € 457 million related
to Actavis Group as well as impairments on Greek Government bonds.
Provision for credit losses in 2012 increased by € 243 million, or 62 %, in comparison to 2011, mainly due
to higher provisions in relation to IAS 39 reclassified assets.
Noninterest expenses in 2012 increased by € 751 million, or 29 %, compared to 2011. The increase was
mainly driven by specific items such as litigation charges, settlement costs and impairments. While 2012
included € 421 million impairment of intangible assets, 2011 was impacted by a € 135 million property
related impairment charge, € 97 million related to BHF-BANK and additional settlement costs.
The loss before income taxes in 2012 was € 2.9 billion, an increase of € 834 million compared to 2011. The
main driver was specific items leading to higher noninterest expenses for 2012.
190
Consolidation & Adjustments
The following table sets forth the results of Consolidation & Adjustments for the years ended
December 31, 2012 and 2011, in accordance with its management reporting systems in effect on
December 31, 2013.
in € m.
2012
Change in
fiscal year 2012 to
fiscal year 2011
2011
in € m.
in %
(audited)
(39)
(936)
N/M
(1)
1
N/M
252
330
131
(213)
148
(69)
Net revenues(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total noninterest expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(975)
0
582
(65)
Income (loss) before income taxes . . . . . . . . . . . . . . . . . . . . . . . . .
(1,493)
(77)
(1,416)
N/M
Assets(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Risk-weighted assets(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11,577
16,133
0
12,843
1,884
3,850
(1,266)
14,249
(3,850)
(10)
N/M
N/M
1 Net interest income and noninterest income.
2 Assets in C&A reflect corporate assets, such as deferred tax assets or central clearing accounts, outside the management
responsibility of the business segments.
3 Risk-weighted assets in C&A reflect corporate assets outside the management responsibility of the business segments,
primarily those corporate assets related to the Group’s pension schemes. The decrease of risk-weighted assets in 2013 was
primarily driven by the de-risking initiatives in Deutsche Bank’s pension assets. The main driver for the increase of riskweighted assets in 2012 in comparison to 2011 was the reclassification of risk-weighted assets related to gross pension
fund assets in 2012 to C&A.
4 Average active equity assigned to C&A reflects the residual amount of equity that is not allocated to the segments as
described in Note 4 “Business Segments and Related Information” to the consolidated financial statements of Deutsche
Bank for the fiscal year 2013, which are contained in the section “Financial Statements” of this Prospectus.
In 2012 and in 2011, net revenues in C&A included timing differences from different accounting methods
used for management reporting and IFRS of negative € 715 million and positive € 25 million in 2012 and
2011, respectively. In 2012, a negative effect of € 305 million related to economically hedged positions
which resulted from the reversal of interest rate effects in prior periods and from changes in interest rates
in both euro and U.S. dollar. Approximately € 290 million were attributable to a narrowing of mid- to longterm spreads on the mark-to-market valuation of U.S. dollar/euro basis swaps related to the Group’s
funding. In addition, the narrowing of credit spreads on Group’s own debt contributed mark-to-market
losses of approximately € 115 million to the 2012 result in C&A. In 2011, the result was largely caused by
two partly offsetting effects. The widening of the credit spread of the Group’s own debt in 2012 resulted in
a mark-to market gain. Economically hedged short-term positions as well as economically hedged debt
issuance trades resulted in a net loss in 2012, mainly driven by movements in interest rates in both euro
and U.S. dollar.
The remainder of net revenues in 2012 reflected negative € 291 million related to spreads for capital
instruments, net interest income which was not allocated to the business segments and items outside the
management responsibility of the business segments. Such items include net funding expenses on nondivisionalized assets/liabilities, e.g. deferred tax assets/liabilities, and net interest income related to tax
refunds and accruals.
Noninterest expenses in 2012 were driven by litigation related charges of € 360 million as well as bank
levies of € 213 million, primarily related to Germany. These were partly offset by a credit from the U.K.,
resulting from a double taxation agreement. In 2011, main drivers were bank levy related charges of
€ 247 million, primarily related to Germany and the U.K.
The decrease in noncontrolling interests in 2012 compared to 2011 was mainly due to Postbank.
Loss before income taxes was € 1.5 billion in 2012, compared to € 77 million in 2011, primarily reflecting
timing differences from different accounting methods used for management reporting and IFRS and
litigation-related charges.
191
Financial Position
Comparison of Financial Position as of March 31, 2014 and December 31, 2013
The following table shows information on Deutsche Bank’s financial position as of March 31, 2014 and
December 31, 2013 based on Deutsche Bank’s condensed consolidated interim financial statements as of
and for the three-month period ended March 31, 2014 and the consolidated financial statements as of and
for the fiscal year ended December 31, 2013.
in € m.
Change as of
March 31, 2014
in comparison to
Dec. 31, 2013
in € m.
in %
(reviewed, unless
stated otherwise)
(722)
(4)
(4,291)
(6)
March 31,
2014
(reviewed, unless
stated otherwise)
16,433
73,693
Dec. 31,
2013
(audited, unless
stated otherwise)
17,155
77,984
53,211
199,842
48,232
210,070
4,979
(10,228)
10
(5)
481,936
504,590
(22,654)
(4)
180,441
184,597
(4,155)
(2)
114,740
32,083
380,954
116,764
32,485
376,582
(2,024)
(403)
4,372
(2)
(1)
1
138,454
111,610
83,185
109,006
55,269
2,604
66
2
Total assets . . . . . . . . . . . . . . . . . . . . . . . . .
1,636,574
1,611,400
25,174
2
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Central bank funds purchased, securities
sold under repurchase agreements and
securities loaned . . . . . . . . . . . . . . . . . . . .
Trading liabilities . . . . . . . . . . . . . . . . . . . . . .
Negative market values from derivative
financial instruments . . . . . . . . . . . . . . . . .
Financial liabilities designated at fair value
through profit or loss . . . . . . . . . . . . . . . .
thereof:
Securities sold under repurchase
agreements . . . . . . . . . . . . . . . . . . . . . .
Securities loaned(1) . . . . . . . . . . . . . . . . . .
Other short-term borrowings . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . .
Brokerage and securities related
payables . . . . . . . . . . . . . . . . . . . . . . . . . . .
Remaining liabilities . . . . . . . . . . . . . . . . . . .
516,565
527,750
(11,185)
(2)
16,246
59,784
15,686
55,804
560
3,980
4
7
467,329
483,428
(16,099)
(3)
95,541
90,104
5,436
6
79,157
1,149
55,175
132,895
73,642
1,249
59,767
133,082
5,515
(100)
(4,592)
(187)
7
(8)
(8)
0
172,916
64,107
118,992
71,821
53,924
(7,714)
45
(11)
Total liabilities . . . . . . . . . . . . . . . . . . . . . . .
1,580,557
1,556,434
24,123
2
Total equity . . . . . . . . . . . . . . . . . . . . . . . . .
56,017
54,966
1,051
2
Cash and due from banks . . . . . . . . . . . . . .
Interest-earning deposits with banks . . . . .
Central bank funds sold, securities
purchased under resale agreements and
securities borrowed . . . . . . . . . . . . . . . . .
Trading assets . . . . . . . . . . . . . . . . . . . . . . . .
Positive market values from derivative
financial instruments . . . . . . . . . . . . . . . . .
Financial assets designated at fair value
through profit or loss . . . . . . . . . . . . . . . .
thereof:
Securities purchased under resale
agreements . . . . . . . . . . . . . . . . . . . . . .
Securities borrowed . . . . . . . . . . . . . . . . .
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Brokerage and securities related
receivables . . . . . . . . . . . . . . . . . . . . . . . . .
Remaining assets . . . . . . . . . . . . . . . . . . . . .
1
Unaudited.
192
Assets and Liabilities
Movements in Assets
The overall increase of € 25 billion (or 2 %) as of March 31, 2014, compared to December 31, 2013, was
primarily driven by a € 55 billion growth in brokerage and securities related receivables, following the
seasonality pattern Deutsche Bank typically observes of lower year-end levels versus higher volumes over
the course of the year.
This increase was partly offset by a € 23 billion reduction in positive market values from derivative financial
instruments, primarily related to FX and interest rate derivatives, and by trade restructuring to reduce markto-market.
Trading assets decreased by € 10 billion in the first three months of 2014, primarily in equity securities and
traded loans.
Cash and due from banks as well as interest-earning deposits with banks decreased in the same period by
€ 1 billion and € 4 billion, respectively. This was primarily driven by the reduction in deposits during the
quarter.
Foreign exchange rate movements (included in the figures above), in particular the strengthening of the
Japanese yen, the Australian dollar and the Pound Sterling versus the euro, contributed € 2 billion to the
increase of Deutsche Bank’s balance sheet during the first quarter.
Movements in Liabilities
As of March 31, 2014, total liabilities increased by € 24 billion (or 2 %) compared to year-end 2013.
Brokerage and securities related payables were up € 54 billion compared to December 31, 2013, whilst
negative market values from derivative financial instruments declined by € 16 billion, primarily due to the
same reasons driving the movements in brokerage and securities related receivables and positive market
values from derivative financial instruments as outlined above.
Central bank funds purchased, securities sold under repurchase agreements and securities loaned, under
both accrual and fair value accounting, have increased by € 6 billion in total, primarily stemming from
increased client activity.
Trading liabilities increased by € 4 billion, almost equally split between debt and equity short positions.
Deposits were down by € 11 billion, driven by reductions in Deutsche Bank’s funding through unsecured
wholesale, transaction banking and retail clients.
Equity
Total equity as of March 31, 2014 increased by € 1.1 billion compared to December 31, 2013. The main
factor contributing to this development was net income attributable to Deutsche Bank shareholders of
€ 1.1 billion.
Regulatory Capital
Starting January 1, 2014, the calculation of Deutsche Bank’s regulatory capital and capital ratios
incorporates the capital requirements following the Capital Requirements Regulation and Capital
Requirements Directive 4, subject to certain transitional rules. Therefore when referring to the results
according to the transitional rules Deutsche Bank uses the term “CRR/CRD 4”. When referring to the
results according to the full application of the final envisaged framework Deutsche Bank uses the term
“CRR/CRD 4 fully loaded”. In some cases, CRR/CRD 4 left in place unchanged transitional rules regarding
the risk weighting of certain categories of assets that had been adopted in earlier capital adequacy
frameworks through Basel 2.5. In these cases, Deutsche Bank’s CRR/CRD 4 methodology assumes that
the impact of the expiration of these transitional rules will be mitigated through sales of the underlying
assets or other measures prior to these expirations.
Tier 1 capital according to CRR/CRD 4 as of March 31, 2014 was € 49.8 billion, € 2.0 billion lower than at
the end of 2013, resulting in a CRR/CRD 4 Tier 1 capital ratio of 13.2 % as of March 31, 2014, down from
14.6 % at December 31, 2013. Common Equity Tier 1 capital according to CRR/CRD 4 decreased in the first
three months of 2014 by € 2.0 billion to € 49.8 billion, resulting in a CRR/CRD 4 Common Equity Tier 1
capital ratio of 13.2 % as of March 31, 2014, compared with 14.6 % at the end of 2013.
The decrease in Tier 1 capital in the first three months of 2014 resulted mainly from the derecognition of
Additional Tier 1 instruments of € 1.2 billion that are phased out by 10 % in 2014. Deutsche Bank saw
further negative impacts on its Tier 1 capital and Common Equity Tier 1 capital from deductions that are
193
phased in with 20 % such as deductions from deferred tax assets of € 832 million and from defined benefit
pension fund assets of € 152 million that were not deducted at year-end 2013. Deutsche Bank had further
reduction in its Tier 1 capital of € 203 million in relation to equity compensation mainly driven by its vesting
activities at the beginning of this year. The decrease was partially offset by first quarter’s net income
attributable to Deutsche Bank Shareholders of € 1.1 billion, lowered by dividend accrual of € 191 million.
Deutsche Bank’s fully loaded CRR/CRD 4 Tier 1 capital as of March 31, 2014 was € 35.3 billion, € 1.3 billion
higher than at the end of 2013, resulting in a fully loaded CRR/CRD 4 Tier 1 capital ratio of 9.5 % as of
March 31, 2014, down from 9.7 % at December 31, 2013.
Deutsche Bank’s fully loaded CRR/CRD 4 Common Equity Tier 1 capital increased in the first three months
of 2014 by € 1.3 billion to € 35.3 billion. The increase in Common Equity Tier 1 capital and its impact on the
ratio however was more than offset by an increase in CRR/CRD 4 fully loaded RWA, resulting in a fully
loaded CRR/CRD 4 Common Equity Tier 1 capital ratio of 9.5 % as of March 31, 2014, compared with
9.7 % at the end of 2013.
Risk-weighted assets according to CRR/CRD 4 were € 376 billion as of March 31, 2014, € 76 billion (25 %)
higher than at the end of 2013 according to Basel 2.5 rules, largely reflecting the impact of the CRR/CRD 4
framework. Risk-weighted assets for credit risk increased by € 32.1 billion, mainly driven by the
implementation of the CRR/CRD 4 framework. Additionally, the new calculation of risk-weighted assets for
the Credit Valuation Adjustment according to the CRR/CRD 4 framework added € 16.3 billion to the overall
increase. Risk-weighted assets for market risk increased by € 27.9 billion mainly driven by the inclusion of
former capital deduction items for higher risk securitization position into the risk-weighted asset calculation
according to the CRR/CRD 4 framework. Risk-weighted assets for operational risk decreased by
€ 542 million as of March 31, 2014, mainly driven by a higher capital benefit of € 375 million in forward
looking risk component caused by a better outlook in key risk indicators.
Amendments to IAS 39 and IFRS 7, “Reclassification of Financial Assets”
As of March 31, 2014 and December 31, 2013 the carrying value of reclassified assets was € 8.3 billion and
€ 8.6 billion, respectively, compared with a fair value of € 8.2 billion and € 8.2 billion as of March 31, 2014
and December 31, 2013, respectively. These assets are held in the NCOU.
Please refer to the section “Amendments to IAS 39 and IFRS 7, “Reclassification of Financial Assets”” in
the notes to Deutsche Bank’s condensed consolidated interim financial statements as of and for the three
months period ended March 31, 2014, which are included in the “Financial Statements” of this Prospectus,
for additional information on these assets and on the impact of their reclassification.
194
Comparison of Financial Position as of December 31, 2013 and 2012
The following table shows information on Deutsche Bank’s financial position as of December 31, 2013 and
2012, based on Deutsche Bank’s consolidated financial statements as of and for the fiscal year ended
December 31, 2013. Prior year figures have been restated.
in € m.
Cash and due from banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest-earning deposits with banks . . . . . . . . . . . . . . . . . . . . . .
Central bank funds sold, securities purchased under resale
agreements and securities borrowed . . . . . . . . . . . . . . . . . . . .
Trading assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Positive market values from derivative financial instruments . .
Financial assets designated at fair value through profit or
loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
thereof:
Securities purchased under resale agreements . . . . . . . . . . .
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Brokerage and securities related receivables . . . . . . . . . . . . . . .
Remaining assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Change as of
Dec. 31, 2013
in comparison to
Dec. 31, 2012
Dec. 31,
Dec. 31,
2013
2012
in € m.
in %
17,155
27,877
(10,722)
(38)
77,984
120,637
(42,653)
(35)
48,232
210,070
504,590
60,583
254,459
768,353
(12,351)
(44,389)
(263,763)
(20)
(17)
(34)
184,597
187,027
(2,430)
(1)
116,764
32,485
376,582
83,185
109,006
1,611,400
124,987
28,304
397,377
97,312
108,649
2,022,275
(8,223)
4,182
(20,795)
(14,128)
357
(410,875)
(7)
15
(5)
(15)
0
(20)
527,750
577,210
(49,460)
(9)
15,686
55,804
39,310
54,400
(23,624)
1,404
(60)
3
483,428
752,652
(269,223)
(36)
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Central bank funds purchased, securities sold under
repurchase agreements and securities loaned . . . . . . . . . . . .
Trading liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Negative market values from derivative financial
instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Financial liabilities designated at fair value through profit or
loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
thereof:
Securities sold under repurchase agreements . . . . . . . . . . . .
Securities loaned(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Brokerage and securities related payables . . . . . . . . . . . . . . . . .
Remaining liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
90,104
110,409
(20,304)
(18)
73,642
1,249
59,767
133,082
118,992
71,821
1,556,434
82,267
8,443
69,661
157,325
127,456
79,612
1,968,035
(8,625)
(7,194)
(9,894)
(24,243)
(8,464)
(7,792)
(411,601)
(10)
(85)
(14)
(15)
(7)
(10)
(21)
Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
54,966
54,240
727
1
1
Unaudited.
Movements in Assets
The overall decrease in total assets of € 411 billion (or 20 %) as of December 31, 2013, compared to
December 31, 2012, was largely related to a € 264 billion reduction in positive market values from
derivative financial instruments. This was predominantly driven by interest-rate derivatives and shifts in U.S.
dollar, euro and pound sterling yield curves during 2013, foreign exchange rate movements as well as trade
restructuring to reduce mark-to-market, improved netting and increased clearing.
Cash and due from banks as well as interest-earning deposits with banks decreased in the same period by
€ 11 billion and € 43 billion, respectively. This was primarily due to managed reductions in Deutsche Bank’s
wholesale funding activities, other deposits and long-term debt, as well as liquidity reserve optimization.
The decline in trading assets by € 44 billion during 2013, mainly in debt securities, was driven by foreign
exchange rate movements as well as by active inventory reductions as part of the de-leveraging initiative
and reductions in RMBS and Commodities business inventory.
During 2013, loans declined by € 21 billion, primarily from managed reductions in Deutsche Bank’s NCOU.
195
Central bank funds sold, securities purchased under resale agreements and securities borrowed, under
both accrual and fair value accounting, decreased from year-end 2012 to year-end 2013 by € 16 billion in
total, primarily resulting from collateral optimization initiatives.
Brokerage and securities related receivables as of year-end 2013 were down by € 14 billion compared to
year-end 2012, driven by lower cash/margin receivables corresponding to the significant reduction of
negative market values from derivative financial instruments.
Foreign exchange rate movements (included in the figures above), in particular the significant weakening of
the U.S. dollar during the third quarter of 2013 and the Japanese yen throughout 2013 versus the euro,
contributed € 56 billion to the reduction of Deutsche Bank’s balance sheet during 2013.
As of December 31, 2013, total liabilities decreased by € 412 billion (or 21 %) compared to year-end 2012.
From year-end 2012 to year-end 2013, negative market values from derivative financial instruments
declined by € 269 billion, driven by the same factors as for positive market values from derivative financial
instruments.
During this period, Deposits were down by € 49 billion, driven by the aforementioned reductions in
Deutsche Bank’s wholesale funding activities and reductions in its retail and transaction banking businesses
from their year-end 2012 peaks.
Central bank funds purchased, securities sold under repurchase agreements and securities loaned, under
both accrual and fair value accounting, decreased from year-end 2012 to year-end 2013 by € 39 billion in
total, primarily stemming from active internalization of funding of highly liquid inventory as well as some
outright reductions in inventory which was normally secured funded.
The € 24 billion decrease in long-term debt reflects 2013 maturities, repayments and other debt
management activities, arising in both Deutsche Bank’s Core and Non-Core business units.
Equity
Total equity increased by € 726 million between 2012 and 2013. The main factors contributing to this
development were a capital increase of € 3.0 billion from the issuance of 90 million new common shares on
April 30, 2013 and a net income attributable to Deutsche Bank shareholders of € 666 million. Partly
offsetting were negative effects from exchange rate changes of € 1.1 billion mainly related to the U.S.
dollar, cash dividends paid to Deutsche Bank shareholders of € 764 million and remeasurement losses
related to defined benefit plans of € 659 million, which were reported in retained earnings as well as a
negative net change in share awards of € 385 million in additional paid-in capital.
Regulatory Capital
The calculation of Deutsche Bank’s regulatory capital as of December 31, 2013 is based on the “Basel 2.5”
framework. Deutsche Bank’s total regulatory capital (Tier 1 and Tier 2 capital) reported under Basel 2.5 was
€ 55.5 billion at the end of 2013 compared to € 57.0 billion at the end of 2012. Tier 1 capital increased to
€ 50.7 billion at the end of 2013 versus € 50.5 billion at the end of 2012. As of December 31, 2013,
Common Equity Tier 1 (formerly referred to as Core Tier 1) capital increased to € 38.5 billion from
€ 38.0 billion at the end of 2012. The increase in Common Equity Tier 1 capital primarily resulted from the
aggregate gross proceeds of Deutsche Bank’s share issuance on April 30, 2013 partly offset by cumulative
currency translation effects and re-measurement effects related to defined benefit plans, net of tax.
As of December 31, 2013 and December 31, 2012 the carrying value of reclassified assets was € 8.6 billion
and € 17.0 billion, respectively, compared with a fair value of € 8.2 billion and € 15.4 billion as of
December 31, 2013 and December 31, 2012, respectively. These assets are held in the NCOU.
For additional information on these assets and on the impact of their reclassification, see Note 13
“Amendments to IAS 39 and IFRS 7, ‘Reclassification of Financial Assets’” to the consolidated financial
statements of Deutsche Bank as of and for the fiscal year ended December 31, 2013, which are contained
in the section “Financial Statements” of this Prospectus.
196
Comparison of Financial Position as of December 31, 2012 and 2011
The following table shows information on Deutsche Bank’s financial position as of December 31, 2012 and
2011, based on Deutsche Bank’s consolidated financial statements as of and for the fiscal year ended
December 31, 2012.
in € m.
Cash and due from banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interest-earning deposits with banks . . . . . . . . . . . . . . . . . . . . . .
Central bank funds sold, securities purchased under resale
agreements and securities borrowed . . . . . . . . . . . . . . . . . . . .
Trading assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Positive market values from derivative financial instruments . . .
Financial assets designated at fair value through profit or
loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
thereof:
Securities purchased under resale agreements . . . . . . . . . . . .
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Brokerage and securities related receivables . . . . . . . . . . . . . . . .
Remaining assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dec. 31,
2012
27,885
119,548
Change as of
Dec. 31, 2012
in comparison to
Dec. 31, 2011
Dec. 31,
in
€ m.
in %
2011
(audited)
15,928
11,957
75
162,000
(42,452)
(26)
60,517
245,538
768,316
57,110
240,924
859,582
3,407
4,614
(91,266)
6
2
(11)
187,027
180,293
6,734
4
124,987
28,304
397,279
97,295
108,924
2,012,329
117,284
27,261
412,514
122,810
112,942
2,164,103
7,703
1,043
(15,235)
(25,515)
(4,018)
(151,774)
7
4
(4)
(21)
(4)
(7)
577,202
601,730
(24,528)
(4)
39,253
54,914
752,706
43,400
63,886
838,817
(4,147)
(8,972)
(86,111)
(10)
(14)
(10)
109,166
118,318
(9,152)
(8)
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Central bank funds purchased, securities sold under
repurchase agreements and securities loaned . . . . . . . . . . . . .
Trading liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Negative market values from derivative financial instruments . .
Financial liabilities designated at fair value through profit or
loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
thereof:
Securities sold under repurchase agreements . . . . . . . . . . . . .
Securities loaned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Brokerage and securities related payables . . . . . . . . . . . . . . . . . .
Remaining liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
82,267
8,443
69,060
158,097
128,010
69,511
93,606
3,697
65,356
163,416
139,733
74,787
(11,339)
4,746
3,704
(5,319)
(11,723)
(5,276)
(12)
128
6
(3)
(8)
(7)
1,957,919
2,109,443
(151,524)
(7)
Total equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
54,410
54,660
(250)
(0)
Movements in Assets
The overall decrease of € 152 billion as of December 31, 2012 compared to December 31, 2011 was largely
related to a € 91 billion reduction in positive market values from derivatives, primarily driven by yield curve
changes, tightening credit spreads, maturing trades as well as the strengthening Euro against major
currencies.
The € 12 billion increase in cash and due from banks and the € 42 billion decrease in interest earning
deposits with banks reflect Deutsche Bank’s liquidity management activities during 2012, including the
reduction in its discretionary wholesale funding liabilities.
Brokerage and securities related receivables as of December 31, 2012 were down by € 26 billion compared
to December 31, 2011, due to extraordinary low trading volumes over the year-end 2012.
During 2012, loans declined by € 15 billion, primarily from managed reductions in Deutsche Bank’s NCOU.
Foreign exchange rate movements (included in numbers above), in particular of the U.S. dollar and
Japanese yen versus the euro, contributed € 25 billion to the decrease of Deutsche Bank’s balance sheet
during 2012.
197
Total liabilities decreased by € 152 billion over the year 2012, with a € 86 billion reduction in negative
market values from derivatives representing the major driver, primarily due to the same reasons driving the
reduction in positive market values from derivatives as outlined above.
Deposits as of year-end 2012 were down by € 25 billion compared to year-end 2011, largely impacted by
(i) an alignment within the Group of cash/margin collateral received resulting in a € 17 billion reclassification
out of deposits into brokerage and securities related payables as of year-end 2012, and (ii) a reduction in
discretionary wholesale funding liabilities, partially offset by an increase in retail and transaction banking
deposits.
The € 12 billion decrease in brokerage and securities related payables from year-end 2011 to year-end 2012
reflects extraordinary low trading volumes over the year 2012, partially offset by the above mentioned
reclassification out of deposits.
Equity
Total equity decreased by € 250 million between 2011 and 2012. The main factors contributing to this
development were noncontrolling interests which decreased by € 863 million, the cash dividend paid to
Deutsche Bank shareholders of € 689 million and actuarial gains (losses) which decreased by € 452 million.
These negative effects were mostly offset by a decrease of € 763 million in Treasury shares, which were
deducted from equity, the increase of accumulated other comprehensive income of € 688 million and net
income attributable to Deutsche Bank shareholders, which amounted to € 237 million. The increase in
accumulated other comprehensive income over the year 2012 was mainly a result of unrealized net gains
on financial assets available for sale of € 1.1 billion that were partly offset by negative effects from
exchange rate changes of € 423 million, namely related to the U.S. dollar. Unrealized net gains on financial
assets available for sale were mainly related to improved market prices of debt securities from European
issuers. The decrease in noncontrolling interests over the year 2012 was mainly driven by the exercise of
Deutsche Post’s put option on Postbank’s shares in February 2012 and by the conclusion of a domination
and profit and loss transfer agreement with Postbank in the second quarter 2012.
Regulatory Capital
The calculation of Deutsche Bank’s regulatory capital as of December 31, 2012 is based on the “Basel 2.5”framework as implemented by the Capital Requirements Directive 3 into the German Banking Act and the
Solvency Regulation. Deutsche Bank’s Total regulatory capital (Tier 1 and Tier 2 capital) reported under
Basel 2.5 was € 57.0 billion at the end of 2012 compared to € 55.2 billion at the end of 2011. Tier 1 capital
increased to € 50.5 billion at the end of 2012 versus € 49.0 billion at the end of 2011. As of December 31,
2012, Common Equity Tier 1 (formerly referred to as Core Tier 1) capital increased to € 38.0 billion from
€ 36.3 billion at the end of 2011. The increase in both levels of Tier 1 capital primarily reflected reduced
capital deduction items.
As of December 31, 2012 and December 31, 2011, the carrying value of reclassified assets was
€ 17.0 billion and € 22.9 billion, respectively, compared with a fair value of € 15.4 billion and € 20.2 billion as
of December 31, 2012 and December 31, 2011, respectively. These assets are held in the NCOU.
For additional information on these assets and on the impact of their reclassification, see Note 14
“Amendments to IAS 39 and IFRS 7, ‘Reclassification of Financial Assets’” to the consolidated financial
statements of Deutsche Bank as of and for the fiscal year ended December 31, 2012, which are
incorporated by reference into this Prospectus.
Exposure to Monoline Insurers
The deterioration of the U.S. subprime mortgage and related markets generated large exposures to financial
guarantors, such as monoline insurers, that have insured or guaranteed the value of pools of collateral
referenced by CDOs and other market-traded securities. Actual claims against monoline insurers will only
become due if actual defaults occur in the underlying assets (or collateral). There is ongoing uncertainty as
to whether some monoline insurers will be able to meet all their liabilities to banks and other buyers of
protection. Under certain conditions (i.e., liquidation) Deutsche Bank can accelerate claims regardless of
actual losses on the underlying assets.
The following tables summarize the fair value of Deutsche Bank’s counterparty exposures to monoline
insurers with respect to U.S. residential mortgage-related activity and other activities, respectively, in each
198
case on the basis of the fair value of the assets compared with the notional value guaranteed or
underwritten by monoline insurers. The other exposures described in the second table arise from a range of
client and trading activity, including collateralized loan obligations, commercial mortgage-backed securities,
trust preferred securities, student loans and public sector or municipal debt. The tables show the
associated Credit Valuation Adjustments (“CVA”) that Deutsche Bank has recorded against the exposures.
For monolines with actively traded CDS, the CVA is calculated using a full CDS-based valuation model. For
monolines without actively traded CDS, a model-based approach is used with various input factors,
including relevant market driven default probabilities, the likelihood of an event (either a restructuring or an
insolvency), an assessment of any potential settlement in the event of a restructuring, and recovery rates in
the event of either restructuring or insolvency. The monoline CVA methodology is reviewed on a quarterly
basis by management; since the second quarter of 2011 market based spreads have been used more
extensively in the CVA assessment.
The ratings in the tables below are the lowest of Standard & Poor’s, Moody’s or Deutsche Bank’s own
internal credit ratings.
Monoline exposure related to
U.S. residential mortgages
(unaudited)
in € m.
AA Monolines
Other subprime . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alt-A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total AA Monolines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notional
amount
March 31, 2014
Value
prior to
Fair value
CVA
CVA after CVA
87
2,194
2,281
25
729
754
(4)
(76)
(80)
21
653
674
Monoline exposure related to
U.S. residential mortgages
(unaudited)
in € m.
AA Monolines:
Other subprime . . . . . . . . . . . .
Alt-A . . . . . . . . . . . . . . . . . . . . .
Total AA Monolines . . . . . . . . .
December 31, 2013
December 31, 2012
Value
Value
Notional prior to
Fair value Notional prior to
Fair value
amount CVA CVA after CVA amount CVA CVA after CVA
94
2,256
2,350
29
(5)
768 (105)
797 (110)
23
663
686
112
3,011
3,123
47 (11)
1,181 (191)
1,228 (202)
36
990
1,026
Other Monoline exposure
(unaudited)
in € m.
AA Monolines:
TPS-CLO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CMBS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate single name/Corporate CDO . . . . . . . . . . . . . .
Student loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total AA Monolines . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Notional
amount
March 31, 2014
Value
prior to
CVA
CVA
Fair value
after
CVA
1,387
984
253
(3)
(25)
0
228
(3)
284
463
3,118
0
62
312
0
(5)
(30)
0
57
282
Non Investment-Grade Monolines:
TPS-CLO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CMBS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Corporate single name/Corporate CDO . . . . . . . . . . . . . .
Student loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total Non Investment-Grade Monolines
350
1,344
24
599
719
3,036
61
(2)
4
81
94
238
(7)
0
(1)
(6)
(31)
(45)
54
(2)
3
75
63
193
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6,154
550
(75)
475
199
Other Monoline exposure
(unaudited)
in € m.
AA Monolines:
TPS-CLO . . . . . . . . . . . . . . . . . .
CMBS . . . . . . . . . . . . . . . . . . . .
Corporate single name/
Corporate CDO . . . . . . . . . . .
Student loans . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . .
Total AA Monolines . . . . . . . . . .
December 31, 2013
December 31, 2012
Value
Value
Notional prior to
Fair value Notional prior to
Fair value
amount CVA CVA after CVA amount CVA CVA after CVA
Non Investment-Grade
Monolines:
TPS-CLO . . . . . . . . . . . . . . . . . .
CMBS . . . . . . . . . . . . . . . . . . . .
Corporate single name/
Corporate CDO . . . . . . . . . . .
Student loans . . . . . . . . . . . . . .
Other . . . . . . . . . . . . . . . . . . . . .
Total Non Investment-Grade
Monolines . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . .
1,512
1,030
298 (41)
(3)
0
257
(3)
2,441
1,092
575 (101)
2
0
474
2
0
285
511
3,338
0
0
0
0
69
(7)
364 (48)
0
0
62
316
0
297
882
4,712
0
0
29
(3)
274 (127)
880 (231)
0
26
147
649
(8)
0
58
6
455
3,377
147
92
(40)
(28)
107
64
0
604
827
0
0
116 (11)
90 (31)
0
105
60
12
1,284
1,084
0
0
534 (170)
185 (66)
0
364
119
3,228
280 (50)
229
6,212
958 (304)
654
6,566
644 (98)
545
10,924
1,838 (535)
1,303
353
1,444
67
7
The tables exclude counterparty exposure to monoline insurers that relates to wrapped bonds. A wrapped
bond is one that is insured or guaranteed by a third party. As of March 31, 2014 and December 31, 2013,
the exposure on wrapped bonds was € 16 million and € 15 million, respectively. As of December 31, 2013
and December 31, 2012, the exposure on wrapped bonds related to U.S. residential mortgages was € nil
and € 11 million, respectively, and the exposure on wrapped bonds other than those related to U.S.
residential mortgages was € 15 million and € 40 million, respectively. In each case, the exposure represents
an estimate of the potential mark-downs of wrapped assets in the event of monoline defaults.
A proportion of the mark-to-market monoline exposure has been mitigated with CDS protection arranged
with other market counterparties and other economic hedge activity.
As of December 31, 2013 and December 31, 2012 the total Credit Valuation Adjustment held against
monoline insurers was € 209 million and € 737 million respectively.
Tabular Disclosure of Contractual Obligations
The table below shows the cash payment requirements from contractual obligations outstanding as of
December 31, 2013.
Contractual obligations
in € m.
obligations(1)
Long-term debt
.........................
Trust preferred securities(1) . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term financial liabilities designated at fair value
through profit or loss(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Finance lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Operating lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . .
Purchase obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Long-term deposits(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total
Payment due by period
Less
than
1-3
3-5
1 year years
years
150,668
13,868
33,734
5,771
34,972
2,858
31,590
5,002
50,391
237
9,533
47(3)
5,013(3)
1,363
26,470
2,411
209,393
2,054
26(3)
824(3)
483
0
55
42,948
2,713
6
1,304
744
8,665
104
51,365
2,049
5
1,021
97
5,536
134
45,434
2,717
10(3)
1,865(3)
39
12,269
2,118
69,645
1 Includes interest payments.
2 Long-term debt and long-term deposits designated at fair value through profit or loss.
3 Audited.
200
More
than
5 years
Figures above do not include the revenues of noncancelable sublease rentals of € 161 million on operating
leases. Purchase obligations for goods and services include future payments for, among other things,
information technology services, facility management and security settlement services. Some figures above
for purchase obligations represent minimum contractual payments and actual future payments may be
higher. Long-term deposits exclude contracts with a remaining maturity of less than one year. Under certain
conditions future payments for some long-term financial liabilities designated at fair value through profit or
loss may occur earlier. See the following notes to the consolidated financial statements of Deutsche Bank
as of and for the fiscal year ended December 31, 2013 for further information, which are contained in the
section “Financial Statements” of this Prospectus: Note 5 “Net Interest Income and Net Gains (Losses) on
Financial Assets/Liabilities at Fair Value through Profit or Loss”, Note 24 “Leases”, Note 28 “Deposits” and
Note 32 “Long-Term Debt and Trust Preferred Securities”.
Consolidated Statement of Cash Flows
For purposes of the consolidated statement of cash flows, the Group’s cash and cash equivalents include
highly liquid investments that are readily convertible into cash and which are subject to an insignificant risk
of change in value. Such investments include cash and balances at central banks and interest-earning
demand deposits with banks.
The Group’s assignment of cash flows to the operating, investing or financing category depends on the
business model (“management approach”). For the Group, the primary operating activity is to manage
financial assets and financial liabilities. Therefore, the granting of loans and the issuance and management
of long-term borrowings is a core operating activity which is different to a non-financial company, for which
lending and borrowing are not principal revenue producing activities and thus are part of the financing
category.
Cash flows related to subordinated long-term debt and trust preferred securities are viewed differently than
those related to senior-long term debt because they are managed as an integral part of the Group’s capital,
primarily to meet regulatory capital requirements. As a result they are not interchangeable with other
operating liabilities, but can only be interchanged with equity and thus are considered part of the financing
category.
Three months ended March 31, 2014 and 2013
The following table shows selected data from the consolidated statement of cash flows of Deutsche Bank
for the three-month periods ended March 31, 2014 and 2013 based on Deutsche Bank’s consolidated
interim financial statements as of and for the three-month periods ended March 31, 2014.
in € m.
Net cash provided by (used in) operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by (used in) investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net cash provided by (used in) financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Net effect of exchange rate changes on cash and cash equivalents . . . . . . . . . . . . . . . . . .
Cash and cash equivalents at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Three months
ended March 31,
2014
2013
(reviewed)
3,828
7,756
(2,634) (1,329)
(3,281) (1,866)
110
(284)
56,041 53,321
46,407 57,598
The Group’s cash and cash equivalents decreased from € 57.6 billion as of March 31, 2013 to € 46.4 billion
as of March 31, 2014. The decrease was mainly attributable to cash and due from banks and demand
deposits with banks decreased slightly as well.
Reporting a net income of € 1.1 billion and considering the income adjustments for noncash items,
operating activities resulted in positive net cash of € 2.2 billion as of March 31, 2014 (positive € 3.1 billion
as of March 31, 2013), which were included in the decrease of € 9.6 billion in cash and cash equivalents for
the first three months of 2014. The remaining effects on cash and cash equivalents resulted from cash
used in investing and financing activities.
Cash flows from investing activities of negative € 2.6 billion as of March 31, 2014 (negative € 1.3 billion as
of March 31, 2013) were mainly driven by financial assets available for sale. The negative net cash provided
by investing activities was attributable to negative cash flows from the acquisition of financial assets
available for sale, partly offset by positive cash flows from sale and maturities of financial assets available
for sale.
Net cash from financing activities of negative € 3.3 billion as of March 31, 2014, compared to negative
€ 1.9 billion as of March 31, 2013, was mainly driven by repayments and extinguishments of subordinated
201
long-term debt and trust preferred securities and purchase and sale activities of own shares. Other
financing activities consisted of issuances of subordinated long-term debt and trust preferred securities and
the change in noncontrolling interests.
The net effect of operating, investing and financing cash flows as described above led to a decrease in cash
and cash equivalents.
Fiscal Years 2013 and 2012
The following table shows selected data for the fiscal years ended December 31, 2013 and 2012 based on
Deutsche Bank’s consolidated financial statements as of and for the fiscal year ended December 31, 2013.
in € m.
Cash and cash equivalents at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2013
2012
(audited)
7,184 (23,954)
(3,015)
(2,647)
(544)
(2,152)
(907)
39
53,321
82,032
56,041
53,321
The Group’s cash and cash equivalents increased from € 53.3 billion as of year-end 2012 to € 56.0 billion as
of December 31, 2013. The increase was attributable to demand deposits with banks, whereas cash and
due from banks decreased.
Reporting a net income of € 681 million and considering the income adjustments for noncash items,
operating activities resulted in positive net cash of € 7.2 billion as of year-end 2013 (negative € 23.9 billion
as of year-end 2012), which were included in the increase of € 2.7 billion in cash and cash equivalents in the
financial year 2013. The remaining effects on cash and cash equivalents resulted from cash used in
investing and financing activities.
Cash flows from investing activities of negative € 3.0 billion in 2013 (negative € 2.6 billion in 2012) were
mainly driven by financial assets available for sale. The negative net cash provided by investing activities
was attributable to negative cash flows from the acquisition of financial assets available for sale, partly
offset by positive cash flows from sale and maturities of financial assets available for sale.
Net cash from financing activities of negative € 0.5 billion as of December 31, 2013, compared to negative
€ 2.2 billion as of year-end 2012, was mainly driven by issuances and repayments as well as
extinguishments of subordinated long-term debt, the capital increase in April 2013, and purchase and sale
activities of own shares. Other financing activities consisted of cash dividends paid, issuances and
repayments, as well as extinguishments of trust preferred securities and the change in noncontrolling
interests.
The net effect of operating, investing and financing cash flows as described above led to an increase in
cash and cash equivalents.
Fiscal Years 2012 and 2011
The following table shows selected data for the fiscal years ended December 31, 2012 and 2011 based on
Deutsche Bank’s consolidated financial statements as of and for the fiscal year ended December 31, 2012.
in € m.
Cash and cash equivalents at beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cash and cash equivalents at end of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2012
2011
(audited)
(23,954)
7,802
(2,647) 11,915
(2,152)
3,160
39
(964)
82,032 66,353
53,321 81,946
The Group’s cash and cash equivalents decreased from € 82.0 billion as of year-end 2011 to € 53.3 billion
as of December 31, 2012. The decrease was attributable to demand deposits with banks, whereas cash
and due from banks increased.
Reporting a net income of € 316 million and considering the income adjustments for noncash items,
operating activities resulted in negative net cash of € 23.9 billion as of year-end 2012 (positive € 7.8 billion
as of year-end 2011), which were included in the decrease of € 28.7 billion in cash and cash equivalents in
the financial year 2012. The remaining decrease in cash and cash equivalents resulted from cash used in
investing and financing activities.
202
Cash flows from investing activities of negative € 2.6 billion in 2012 (positive € 11.9 billion in 2011) were
mainly driven by financial assets available for sale. The negative net cash provided by investing activities
was attributable to negative cash flows from the acquisition of financial assets available for sale partly offset
by positive cash flows from sale and maturities of financial assets available for sale.
Net cash from financing activities of negative € 2.1 billion as of December 31, 2012, compared to negative
€ 3.2 billion as of year-end 2011, was mainly determined by purchase and sale of own shares. Other
financing activities consisted of cash dividends paid, issuances and repayments, as well as extinguishments
of subordinated long-term debt and trust preferred securities and the change in noncontrolling interests.
The net effect of operating, investing and financing cash flows as described above led to a decrease in cash
and cash equivalents.
Additional Information from the Audited Non-consolidated Financial Statements of Deutsche Bank
AG for the Fiscal Year 2013
Pursuant to the audited non-consolidated financial statements of the Company prepared in accordance with
the German Commercial Code (HGB) as of and for the fiscal year ended December 31, 2013, Deutsche
Bank AG recorded a net income of € 893 million in 2013, after a net income of € 729 million in 2012. The
increase by € 164 million was mainly attributable to net non-operating expenses before taxes, which
decreased by € 1.6 billion compared to 2012, and higher operating profit before taxes, which increased by
€ 390 million compared to 2012, partly compensated by an addition to the fund for general banking risks by
€ 450 million and a tax expense of € 850 million (2012: tax benefit of € 538 million).
The increase in the operating profit by € 390 million was driven by lower risk provisioning in the amount of
€ 180 million, a reduction in administrative expenses by € 160 million and increased revenues in the
amount of € 52 million.
The stable development of revenues, comprising net interest income, net commission income and net
trading results, which increased in 2013 compared to 2012 by € 52 million to € 18.8 billion, was the net
result of several nearly offsetting developments. A decrease in net interest income of € 1.3 billion was
mainly due to a reduction in current income, which decreased by € 1.6 billion, whereas interest income
from lending, money market transaction and bonds and notes after corresponding interest expenses
increased by € 265 million. Net commission income increased by € 868 million. The net trading result
before changes in the trading-related special reserve according to Section 340e (4) HGB remained stable at
€ 2.7 billion. This level lowered the average trading results of the last four years. Consequently, the tradingrelated special reserve was reduced by € 450 million, which improved the overall trading result by the same
amount. A corresponding addition to the fund for general banking risks was recorded to maintain the level
of reserves.
Total administrative expenses in 2013 compared to 2012 decreased by € 160 million to € 12.6 billion. This
development was mainly due to staff expenses which decreased by € 663 million, based on lower
expenses for deferred compensation and severance expenses and reduced charges for defined benefit
obligations. Other administrative expenses increased by € 502 million, predominantly due to higher ITrelated costs.
The balance of other operating income/expenses in 2013 remained stable compared to 2012 at negative
€ 2.3 billion. Higher net positive results relating to non-trading derivatives and lower sundry operating
expenses were offset by negative returns from plan assets and higher litigation-related charges.
Total cost of risk provisioning, consisting of credit related risk provisions and the net result from securities
held in the liquidity reserve, decreased by € 180 million to € 529 million in 2013 compared to 2012, mainly
driven by improved results from securities held in the liquidity reserve.
The net non-operating expenses before taxes decreased by € 1.6 billion to negative € 1.3 billion in 2013
compared to 2012. The main reasons for the reduction of the negative balance were lower net impairments
of subsidiaries amounting to a net effect of € 819 million (2012: net impairments of € 2.4 billion), partly
offset by net charges on securities treated as fixed assets of € 250 million (2012: net gain of € 39 million).
Additions to the fund for general banking risks amounted to € 450 million in 2013. No change to the fund
was recorded in 2012.
Total tax expense amounted to € 850 million in 2013 (2012: tax benefit € 538 million).
Total assets as of December 31, 2013 decreased compared to December 31, 2012 by € 338 billion to
€ 1,385 billion, mainly due to decreases of positive and negative market values of derivatives in the trading
book. Reductions in receivables from banks and liabilities to banks also contributed to the overall reduction
of balance sheet volume.
203
In 2013 shareholders’ equity (excluding distributable profit) increased compared to 2012 by € 3.0 billion to
€ 37.0 billion, thereof € 3.0 billion due to a capital increase from the issuance of 90 million new common
shares on April 30, 2013.
Pursuant to the resolution adopted by the Company’s General Meeting on May 22, 2014, Deutsche Bank
AG paid a dividend of € 0.75 per ordinary share for the fiscal year 2013. For further information on the
payment of dividends and the Company’s dividend policy, see “Dividend Policy and Earnings per Share—
Dividend Policy”.
The non-consolidated audited financial statements of Deutsche Bank AG as of December 31, 2013
prepared in accordance with the German Commercial Code (HGB) are contained in the section “Financial
204
RISK MANAGEMENT
Introduction
The following qualitative and quantitative risk disclosures provide a comprehensive view of the risk profile
of Deutsche Bank Group. All quantitative information generally reflects Deutsche Bank Group including
Postbank for the financial years ending on December 31, 2013 and December 31, 2012. The section
“—Risk Management for the First Three Months of 2014” separately covers the risk profile of Deutsche
Bank Group for the first three months of 2014. In the limited instances where a consolidated view has not
been presented, a separate Postbank risk disclosure or applicable qualitative commentary is provided where
appropriate.
Disclosures according to Pillar 3 of the Basel 2.5 Capital Framework
The following sections reflect the Pillar 3 disclosures required by the international capital adequacy
standards as recommended by the Basel Committee on Banking Supervision known as Basel 2 and
Basel 2.5. The European Union enacted the Capital Requirements Directives 2 and 3, which amended the
Basel capital framework in Europe as initially adopted by the Banking Directive and Capital Adequacy
Directive. Germany implemented the Capital Requirements Directives into national law and established the
disclosure requirements related to Pillar 3 in Section 26a of the German Banking Act (Kreditwesengesetz –
KWG) and in Part 5 of the German Solvency Regulation (Solvabilitätsverordnung – SolvV). For consistency
purposes Deutsche Bank uses the term “Basel 2.5” when referring to these regulations as implemented
into German law as they were in effect until December 31, 2013, throughout the section “Risk
Management” of this Prospectus.
Prior to January 1, 2014, Deutsche Bank applied the Basel 2.5 capital framework for the majority of its risk
exposures on the basis of internal models for measuring credit risk, market risk and operational risk, as
approved by the BaFin, the German Federal Financial Supervisory Authority (Bundesanstalt für
Finanzdienstleistungsaufsicht). All Pillar 3 relevant disclosures are compiled based upon a set of internally
defined principles and related processes as stipulated in Deutsche Bank’s applicable risk disclosure policy.
The following table provides the location of the Pillar 3 disclosure topics in this Prospectus.
Pillar 3 disclosure in this Prospectus
Pillar 3 disclosure topic
Introduction and Scope of Application of Pillar 3
Capital Adequacy
Risk and Capital Management of the Group
Counterparty Credit Risk: Strategy and Processes
Counterparty Credit Risk: Regulatory Assessment
Securitization
Trading Market Risk
Nontrading Market Risk
Operational Risk
Liquidity Risk
Where to find in this Prospectus
“—Introduction”
“—Regulatory Capital”
“—Risk Management Executive Summary”,
“—Risk Management Principles”, “—Risk
Assessment and Reporting”, “—Risk Inventory”,
“—Capital Management”, “—Balance Sheet
Management” and “—Overall Risk Position”
“—Credit Risk”, “—Credit Risk—Asset Quality”,
“—Credit Risk—Counterparty Credit Risk:
Regulatory Assessment” and Note 1 “Significant
Accounting Policies and Critical Accounting
Estimates” to the consolidated financial
statements of Deutsche Bank for the fiscal year
2013
“—Credit Risk—Securitization” and Note 1
“Significant Accounting Policies and Critical
Accounting Estimates” to the consolidated
financial statements of Deutsche Bank for the
fiscal year 2013
“—Trading Market Risk”, “—Nontrading Market
Risk”, “—Nontrading Market Risk—Accounting
and Valuation of Equity Investments” and Note 1
“Significant Accounting Policies and Critical
Accounting Estimates – Determination of Fair
Value” to the consolidated financial statements of
Deutsche Bank for the fiscal year 2013
“—Operational Risk”
“—Liquidity Risk”
205
Basel 3 and CRR/CRD 4
In the European Union, the new Basel 3 capital framework was implemented by the CRR and the CRD 4.
The CRR/CRD 4 framework replaced the laws implementing Basel 2 and Basel 2.5. In order to create a
single “rulebook” for credit institutions and investment firms in the European Union, the CRR was made
directly applicable to them, which eliminated the need for national implementing legislation with respect to
the regulatory areas covered by it. As a result, the German Banking Act (KWG) was amended to remove all
provisions that have been supplanted by the CRR. Newly effective provisions governing regulatory capital
requirements, the assessment of counterparty risk and securitizations, and many other regulations relevant
for Deutsche Bank are now located in the CRR. In addition, the CRD 4 was implemented into German law
by means of further amendments to the German Banking Act (KWG) and the German Solvency Regulation
(SolvV) and accompanying regulations. Jointly, these laws and regulations represent the new regulatory
framework applicable in Germany to, among other things, capital, leverage and liquidity as well as Pillar 3
disclosures.
The new regulatory framework became effective on January 1, 2014, subject to certain transitional rules
and is reflected in the section “—Risk Management for the First Three Months of 2014”. However, the
other parts of the “Risk Management” section, which cover the financial years ending on December 31,
2013 and December 31, 2012, refer to the regulations (particularly provisions of the German Banking Act
(KWG) and the German Solvency Regulation (SolvV)) as they were in effect prior to January 1, 2014, unless
otherwise stated.
Some of the new regulatory requirements are subject to transitional rules. The new minimum capital ratios
are being phased in until 2015. Most regulatory adjustments (i.e., capital deductions and regulatory filters)
are being phased in through 2018. Capital instruments that no longer qualify under the new rules are being
phased out through 2022. New capital buffer requirements are being phased in by 2019. Although they are
subject to supervisory reporting starting from 2014, binding minimum requirements for short-term liquidity
will be introduced in 2015 and a standard for longer term liquidity is expected to become effective in 2018.
The introduction of a binding leverage ratio is expected from 2018 following disclosure of the ratio starting
in 2015. The CRR/CRD 4 framework also changed some of the nomenclature relating to capital adequacy
and regulatory capital, such as the use of the term Common Equity Tier 1 in place of the term Core Tier 1.
For purposes of clarity in its disclosures, Deutsche Bank uses the nomenclature from the CRR/CRD 4
framework in the following sections and tables on capital adequacy, regulatory capital and leverage.
Nevertheless, the amounts disclosed for the reporting periods ending on December 31, 2013 and
December 31, 2012 in the section “Risk Management” are based on the Basel 2.5 framework as
implemented into German law and as still in effect for these periods, unless stated otherwise. References
to legal provisions in this section are also to those as in effect as of the relevant reporting date. The
amounts disclosed for the reporting period ending on March 31, 2014 are based on CRR/CRD 4.
As there are still some interpretation uncertainties with regard to the CRR/CRD 4 rules and some of the
related binding Technical Standards are not yet finally available, Deutsche Bank will continue to refine its
assumptions and models as its and the industry’s understanding and interpretation of the rules evolve. In
this light, Deutsche Bank’s pro forma CRR/CRD 4 measures may differ from its earlier expectations, and as
its competitors’ assumptions and estimates regarding such implementation may also vary, Deutsche
Bank’s pro forma CRR/CRD 4 non-GAAP financial measures may not be comparable with similarly labeled
measures used by its competitors.
Deutsche Bank provides details on its pro forma fully loaded CRR/CRD 4 capital ratios in the respective
paragraph in the section “—Regulatory Capital” and provides details on its adjusted pro forma CRR/CRD 4
leverage ratio calculation in the section “—Balance Sheet Management”. More information regarding many
of the regulatory changes described above is also provided in the section “Regulation and Supervision—
Regulation and Supervision in Germany” of this Prospectus.
Disclosures according to principles and recommendations of the Enhanced Disclosure Task Force
(EDTF)
In 2012 the Enhanced Disclosure Task Force (“EDTF”) was established as a private sector initiative under
the auspice of the Financial Stability Board, with the primary objective to develop fundamental principles for
enhanced risk disclosures and to recommend improvements to existing risk disclosures. As a member of
the EDTF Deutsche Bank implemented the disclosure recommendations in the section “Risk
Management” of this Prospectus.
206
Scope of Consolidation
The following sections providing quantitative information refer to Deutsche Bank’s financial statements in
accordance with IFRS. Consequently, the reporting is generally based on IFRS principles of valuation and
consolidation. However, in particular for Pillar 3 purposes, regulatory principles of consolidation are relevant
which differ from those applied for Deutsche Bank’s financial statements and are described in more detail
below. Where the regulatory relevant scope is used this is explicitly stated.
Scope of the Regulatory Consolidation
Deutsche Bank AG, headquartered in Frankfurt am Main, Germany, is the parent institution of the Deutsche
Bank group of institutions (the “regulatory group”), which is subject to the supervisory provisions of the
KWG and the SolvV. Under Section 10a KWG, a regulatory group of institutions consisted of a credit
institution (also referred to as a “bank”) or financial services institution, as the parent company, and all
other banks, financial services institutions, investment management companies, financial enterprises,
payment institutions and ancillary services enterprises which were subsidiaries in the meaning of Section 1
(7) KWG. Such entities were fully consolidated for Deutsche Bank’s regulatory reporting. Additionally certain
companies which were not subsidiaries could be included on a pro-rata basis. Insurance companies and
companies outside the finance sector were not consolidated in the regulatory group of institutions.
For financial conglomerates, however, also the German Act on the Supervision of Financial Conglomerates
(Finanzkonglomerate-Aufsichtsgesetz) applies according to which insurance companies are included in an
additional capital adequacy calculation (also referred to as “solvency margin”). Deutsche Bank has been
designated by the BaFin as a financial conglomerate in October 2007.
The regulatory principles of consolidation are not identical to those applied for Deutsche Bank’s financial
statements. Nonetheless, the majority of subsidiaries according to the KWG are also fully consolidated in
accordance with IFRS in Deutsche Bank’s consolidated financial statements.
The main differences between regulatory and accounting consolidation are:
• Entities which are controlled by Deutsche Bank but do not belong to the banking industry do not form
part of the regulatory group of institutions, but are included in the consolidated financial statements
according to IFRS.
• Most of Deutsche Bank’s Special Purpose Entities (“SPEs”) consolidated under IFRS did not meet the
specific consolidation requirements pursuant to Section 10a KWG and were consequently not
consolidated within the regulatory group. However, the risks resulting from Deutsche Bank’s exposures
to such entities are reflected in the regulatory capital requirements.
• Some entities included in the regulatory group are not consolidated for accounting purposes but are
treated differently, in particular using the equity method of accounting. There are two entities within
Deutsche Bank’s regulatory group which are jointly controlled by their owners and consolidated on a prorata basis. Further four entities are voluntarily consolidated on a pro-rata basis. Four entities are treated
according to the equity method of accounting, one entity is treated as assets available for sale in
Deutsche Bank’s financial statements and one entity is considered as other asset.
As of year-end 2013, Deutsche Bank’s regulatory group comprised 844 subsidiaries, of which seven were
consolidated on a pro-rata basis. The regulatory group comprised 127 credit institutions, one payment
institution, 67 financial services institutions, 449 financial enterprises, 12 investment management
companies and 188 ancillary services enterprises.
As of year-end 2012, Deutsche Bank’s regulatory group comprised 913 subsidiaries, of which three were
consolidated on a pro-rata basis. Deutsche Bank’s regulatory group comprised 137 credit institutions, three
payment institutions, 80 financial services institutions, 514 financial enterprises, 14 investment
management companies and 165 ancillary services enterprises.
120 entities were exempted from regulatory consolidation pursuant to Section 31 (3) KWG as per year end
2013 (year end 2012: 131 entities). Section 31 (3) KWG allowed the exclusion of small entities in the
regulatory scope of application from consolidated regulatory reporting if either their total assets were below
€ 10 million or below 1 % of Deutsche Bank Group’s total assets. None of these entities needed to be
consolidated in Deutsche Bank’s financial statements in accordance with IFRS. The book values of
Deutsche Bank’s participations in their equity were deducted from its regulatory capital, in total € 20 million
as per year end 2013 (year end 2012: € 31 million).
The same deduction treatment was applied to a further 260 regulatory unconsolidated entities and three
immaterial insurance entities as per year end 2013 (year end 2012: 267 entities), not included in the
solvency margin, which Deutsche Bank deducted from its regulatory capital pursuant to the then prevailing
207
Section 10 (6) KWG. Section 10 (6) No. 1, 2, 3 and 5 KWG required the deduction of participating interests
in unconsolidated banking, financial and insurance entities from regulatory capital when more than 10 % of
the capital was held (in case of insurance entities, 20 % of either the capital or voting rights unless included
in the solvency margin calculation of the financial conglomerate). Since Deutsche Bank is classified as a
financial conglomerate, material investments in insurance entities amounting to at least 20 % of capital or
voting rights were not deducted from its regulatory capital as they were included in Deutsche Bank’s
solvency calculation at the financial conglomerate level.
From January 1, 2014, Deutsche Bank’s regulatory consolidation has been governed by the CRR/CRD 4
framework (as implemented into German law where applicable) and the German Act on the Supervision of
Financial Conglomerates. However, the principles described above were not materially affected by the new
CRR/CRD 4 framework.
Overall Risk Assessment
Key risk categories for Deutsche Bank include credit risk, market risk, operational risk (including legal risk),
business risk (including tax and strategic risk), reputational risk and liquidity risk. Deutsche Bank manages
the identification, assessment and mitigation of top and emerging risks through an internal governance
process and risk management tools and processes. Deutsche Bank’s approach to identification and impact
assessment aims to ensure that it mitigates the impact of these risks on its financial results, long term
strategic goals, and reputation.
As part of Deutsche Bank’s regular risk and cross-risk analysis, sensitivities of the key portfolio risks are
reviewed using a bottom-up risk assessment and a top-down macro-economic scenario analysis, which
includes geopolitical considerations. This two-pronged approach allows Deutsche Bank to capture not only
risks that have an impact across its risk inventories and business divisions but also those that are relevant
only to specific portfolios.
Current portfolio-wide risks on which Deutsche Bank continues to focus include: the potential re-escalation
of the European sovereign debt crisis, the impact of US tapering on Emerging Market economies and
broader credit/market risk trends and the potential risk of a geopolitical shock. These risks have been a
consistent focus throughout recent quarters. The assessment of the potential impacts of these risks is
made through integration into Deutsche Bank’s group-wide stress tests which assess its ability to absorb
these events should they occur. The results of these tests showed that Deutsche Bank currently has
adequate capital and liquidity reserves to absorb the impact of these risks if they were to materialize in line
with the stress tests’ parameters.
In addition, Deutsche Bank reviews potential first and second order impacts of the events in Russia and
Ukraine on its portfolios in response to recent geopolitical developments.
The year 2013 saw a continuation of the global trend towards increased regulation in the financial services
industry which continues and is likely to persist through the coming years. Deutsche Bank is focused on
identifying potential regulatory changes and assessing the possible impacts on its business model and
processes.
For purposes of Article 431 of the CRR, Deutsche Bank has adopted a formal risk disclosure policy aiming
to support a conclusion that its risk disclosures are in compliance with applicable legal, regulatory and
accounting risk disclosure standards. A Risk Reporting Committee comprising senior representatives and
subject matter experts from Finance and Risk governs Deutsche Bank’s respective risk disclosure
processes. Based upon its assessment and verification, Deutsche Bank believes that its risk disclosures
presented throughout the section “Risk Management” of this Prospectus appropriately and
comprehensively convey its overall risk profile.
Risk Profile
Deutsche Bank’s mix of various business activities results in diverse risk taking by its business divisions.
Deutsche Bank measures the key risks inherent to its respective business models through the undiversified
Total Economic Capital metric, which mirrors each business division’s risk profile before taking into account
cross-risk effects at the Group level. The changes from year-end 2012 mainly reflect offsetting effects of
Deutsche Bank’s de-risking strategy and methodology updates across risk types.
208
Risk profile of Deutsche Bank’s corporate divisions as measured by total economic capital
(unaudited)
Global
in %
Corporate Trans(unless stated
Banking & action
otherwise)
Securities Banking
Credit Risk . . . . . . . . . . . .
17
7
Market Risk . . . . . . . . . . . .
18
1
Operational Risk . . . . . . . .
9
0
Diversification Benefit . . .
(7)
(1)
Business Risk . . . . . . . . . .
5
0
Total EC in € m. . . . . . . .
11,398
2,033
in % . . . . . . . . . . . . . . . . .
42
7
December 31, 2013
Deutsche
Asset &
Wealth Private & Non-Core
Manage- Business Operament
Clients tions Unit
1
14
5
6
11
5
2
3
5
(2)
(3)
(3)
0
0
1
2,010
6,671
3,349
7
25
12
Consolidation &
Adjustments
0
7
0
0
0
1,710
6
Total in
€ m. Total
12,013
44
12,738
47
5,253
19
(4,515) (17)
1,682
6
27,171 100
100
0
(unaudited)
Global
in %
Corporate Trans(unless stated
Banking & action
otherwise)
Securities Banking
Credit Risk . . . . . . . . . . .
16
6
Market Risk . . . . . . . . . .
14
1
Operational Risk . . . . . . .
7
0
Diversification
Benefit . . . . . . . . . . . . .
(5)
0
Business Risk . . . . . . . . .
7
0
Total EC in € m. . . . . . .
11,118
1,781
in % . . . . . . . . . . . . . . . .
39
6
December 31, 2012
Deutsche
Asset &
Wealth Private & Non-Core
Manage- Business Operament
Clients tions Unit
1
13
8
5
11
10
2
1
7
(2)
0
2,009
(2)
0
6,720
(6)
1
5,782
7
23
20
Consolidation &
Adjust- Total in
ments
€ m. Total
0 12,574
44
5 13,185
46
0
5,018
17
0 (4,435)
0
2,399
1,331 28,741
5
100
(15)
8
100
0
Corporate Banking & Securities’ (CB&S) risk profile is dominated by its trading in support of origination,
structuring and market making activities, which gives rise to market risk and credit risk. Further credit risks
originate from exposures to corporates and financial institutions. Under CB&S’ current business model, the
remainder is derived from operational risks and business risk, primarily from potential legal and earnings
volatility risks, respectively.
Global Transaction Banking’s (GTB) focus on trade finance implies that the vast majority of its risk originates
from credit risk with a small portion from market risk mainly in relation to derivative positions.
The main risk driver of Deutsche Asset & Wealth Management’s (DeAWM) business are guarantees on
investment funds, which Deutsche Bank reports as nontrading market risk. Otherwise DeAWM’s advisory
and commission focused business attracts primarily operational risk.
In contrast to this, Private & Business Clients’ (PBC) risk profile is comprised of credit risk from retail and
small and medium-sized enterprises (SMEs) lending and nontrading market risk from Postbank’s
investment portfolio.
The Non-Core Operations Unit (NCOU) portfolio includes activities that are non-core to the Bank’s future
strategy; assets materially affected by business, environment, legal or regulatory changes; assets
earmarked for de-risking; assets suitable for separation; assets with significant capital absorption but low
returns; and assets exposed to legal risks. NCOU’s risk profile covers risks across the entire range of
Deutsche Bank’s operations comprising credit risks and also market and operational risks (including legal
risks) targeted where possible for accelerated de-risking.
The execution of Deutsche Bank’s divestment strategy in NCOU has resulted in a reduced balance sheet,
which triggered a review of Deutsche Bank’s operational risk allocation framework. In line with the NCOU
business wind down, Deutsche Bank reallocated economic capital for operational risk amounting to
€ 892 million to the Core Bank in the third quarter of 2013.
209
Risk Management Executive Summary
The overall focus of Risk and Capital Management during the fiscal year 2013 was on maintaining Deutsche
Bank’s risk profile in line with its risk strategy, increasing its capital base and supporting its strategic
management initiatives with a focus on balance sheet optimization. This approach is reflected across the
different risk metrics summarized below.
Credit Risk Summary
• For the year 2013, maximum Exposure to Credit Risk decreased by € 420 billion or 20 % to € 1.6 trillion
compared to December 31, 2012, largely due to decreases in positive market values from derivative
instruments and other reductions reflecting various de-risking and balance sheet optimization initiatives.
Credit quality of Maximum Exposure to Credit Risk was 78 % investment-grade rated as of
December 31, 2013, slightly decreased from 80 % as of December 31, 2012.
• Credit exposure remained diversified by region, industry and counterparty. Regional exposure is evenly
spread across Deutsche Bank’s key markets (North America 29 %, Germany 28 %, Rest of Western
Europe 28 % as of December 31, 2013) and the regional distribution has been relatively stable year on
year. Deutsche Bank’s largest industry exposure is to Banks and Insurance, which constitutes 33 % of
overall gross exposures (i.e., before consideration of collateral), flat versus December 31, 2012. These
exposures are predominantly with highly rated counterparties and are generally collateralized. As of
December 31, 2013, Deutsche Bank remained well diversified on a counterparty level with its top ten
exposures representing 10 % of its total gross main credit exposures compared with 11 % as of
December 2012, all with highly rated investment-grade counterparties.
• Provision for credit losses recorded in 2013 increased by € 344 million or 20 % to € 2.1 billion driven by
NCOU as well as the Core Bank. The increase in NCOU reflects a number of single client items among
others related to the European Commercial Real Estate sector. The Core Bank suffered from a single
client credit event in GTB as well as higher charges on loans to shipping companies recorded in CB&S.
Reductions in PBC partly offset these increases and reflected the improved credit environment in
Germany in 2013 compared to 2012.
• Deutsche Bank’s overall loan book decreased by € 20 billion or 5 %, from € 402 billion as of
December 31, 2012 to € 382 billion as of December 31, 2013. Reductions were mainly driven by derisking within the NCOU. Deutsche Bank’s single largest industry category loan book is household
mortgages, equating to € 148 billion as of December 31, 2013, with € 116 billion of these in the stable
German market. Deutsche Bank’s corporate loan book, which accounts for 52 % of the total loan book,
contained 64 % of loans with an investment-grade rating as of December 31, 2013, slightly decreased
from 66 % as of December 31, 2012.
• The economic capital usage for credit risk decreased to € 12.0 billion as of December 31, 2013,
compared with € 12.6 billion at year-end 2012 reflecting process enhancements and reduced exposures,
primarily in NCOU, partially offset by increases from the internal model recalibration.
Market Risk Summary
• Nontrading market risk economic capital usage increased by € 46 million or 1 % to € 8.5 billion as of
December 31, 2013. The increase was primarily driven by methodology changes for structural foreign
exchange risk and longevity risk in pension plans which were partially offset by de-risking activities in
NCOU.
• The economic capital usage for trading market risk totaled € 4.2 billion as of December 31, 2013,
compared with € 4.7 billion at year-end 2012. This decrease was mainly driven by risk reductions from
within NCOU.
• The average value-at-risk of Deutsche Bank’s trading units was € 53.6 million during 2013, compared
with € 57.1 million for 2012. The decrease was driven by lower exposure levels in the interest rate risk
and credit spread risk.
Operational Risk Summary
• The economic capital usage for operational risk increased to € 5.3 billion as of December 31, 2013,
compared with € 5.0 billion at year-end 2012. This was mainly driven by the implementation of a change
in Deutsche Bank’s Advanced Measurement Approach (“AMA”) Model to better estimate the frequency
of its specific operational risk losses. The change led to an increased economic capital usage of € 191
million. An additional driver was the increased operational risk loss profile of Deutsche Bank as well as
that of the industry as a whole. The related operational risk losses that have materialized and give rise to
210
the increased economic capital usage were largely due to the outflows related to litigation,
investigations and enforcement actions. The economic capital continued to include the safety margin
applied in Deutsche Bank’s AMA Model, which was implemented in 2011 to cover unforeseen legal
risks from the recent financial crisis.
• In 2013, the execution of Deutsche Bank’s divestment strategy in NCOU has resulted in a reduced
balance sheet, which triggered a review of its operational risk allocation framework. In line with the
NCOU business wind down, Deutsche Bank reallocated economic capital for operational risk amounting
to € 892 million to the Core Bank in the third quarter of 2013.
Liquidity Risk Summary
• Liquidity reserves amounted to € 196 billion as of December 31, 2013 (compared with € 232 billion as of
December 31, 2012), which translate into a positive liquidity stress result as of December 31, 2013
(under the combined scenario). The reduction in liquidity reserves is largely in line with the reduction in
Deutsche Bank’s short term wholesale funding as well as other liability sources.
• Deutsche Bank’s funding plan of € 18 billion for the full year 2013 was fully completed.
• As of December 31, 2013, 66 % of Deutsche Bank’s overall funding came from the funding sources it
categorizes as the most stable comprising capital markets and equity, retail and transaction banking.
Capital Management Summary
• The Common Equity Tier 1 capital ratio (formerly: Core Tier 1 capital ratio), calculated on the basis of
Basel 2.5, was 12.8 % as of December 31, 2013, compared with 11.4 % at year-end 2012.
• Risk-weighted assets decreased by € 34 billion to € 300 billion as of December 31, 2013, compared with
€ 334 billion at year-end 2012, mainly driven by a € 27 billion decrease in risk-weighted assets from
credit risk, primarily due to loss given default and rating migration, increased collateral and netting
coverage as well as asset disposals.
• The internal capital adequacy ratio increased to 167 % as of December 31, 2013, compared with 158 %
as of December 31, 2012.
• The CRR/CRD 4 pro forma fully loaded Common Equity Tier 1 ratio significantly improved in 2013 from
7.8 % as of December 31, 2012 to 9.7 % as of December 31, 2013. The 190 basis points ratio increase
was driven by Deutsche Bank’s ex-rights issue of common shares in the second quarter of 2013 which
accounted for approximately 80 basis points. The remainder of the increase was driven by reductions in
risk-weighted assets.
Balance Sheet Management Summary
• As of December 31, 2013, Deutsche Bank’s adjusted leverage ratio was 19, down from 22 as of yearend 2012. Deutsche Bank’s leverage ratio calculated as the ratio of total assets under IFRS to total
equity under IFRS was 29 as of December 31, 2013, a significant decrease compared to 37 as at end of
2012.
• Following the publication of the CRR/CRD 4 framework on June 27, 2013, Deutsche Bank established a
new leverage ratio calculation according to the new framework, which became legally binding as of
January 1, 2014. As of December 31, 2013, Deutsche Bank’s adjusted pro forma CRR/CRD 4 leverage
ratio was 3.1 %, taking into account an adjusted pro forma Tier 1 capital of € 45.2 billion over an
applicable exposure measure of € 1,445 billion. The adjusted pro forma Tier 1 capital comprises Deutsche
Bank’s pro forma fully loaded Common Equity Tier 1 capital plus all Additional Tier 1 instruments that
were still eligible according to the transitional phase-out methodology of the CRR/CRD 4. As of
December 31, 2012, Deutsche Bank’s Additional Tier 1 instruments from Basel 2.5 compliant issuances
amounted to € 12.5 billion. During the transitional phase-out period the maximum recognizable amount of
these Additional Tier 1 instruments will reduce at the beginning of each financial year by 10 % or € 1.3
billion through 2022. For December 31, 2013, this resulted in Additional Tier 1 instruments of € 11.2
billion eligible according to CRR/CRD 4 that are included in Deutsche Bank’s adjusted pro forma CRR/
CRD 4 leverage ratio. Deutsche Bank intends to issue new CRR/CRD 4 eligible Additional Tier 1
instruments over time to compensate effects from those that are being phased out under CRR/CRD 4.
211
Risk Management Principles
Risk Management Framework
The diversity of Deutsche Bank’s business model requires it to identify, measure, aggregate and manage its
risks, and to allocate its capital among its businesses. Deutsche Bank operates as an integrated group
through its divisions, business units and infrastructure functions. Risk and capital are managed via a
framework of principles, organizational structures and measurement and monitoring processes that are
closely aligned with the activities of the divisions and business units:
• Core risk management responsibilities are embedded in the Management Board and delegated to senior
risk management committees responsible for execution and oversight. The Supervisory Board regularly
monitors the risk and capital profile.
• Deutsche Bank operates a three-line of defense risk management model whereby front office functions,
risk management oversight and assurance roles are played by functions independent of one another.
• Risk strategy is approved by the Management Board on an annual basis and is defined based on the
Group Strategic and Capital Plan and Risk Appetite in order to align risk, capital and performance targets.
• Cross-risk analysis reviews are conducted across the Group to validate that sound risk management
practices and a holistic awareness of risk exist.
• All major risk classes are managed via risk management processes, including: credit risk, market risk,
operational risk, liquidity risk, business risk and reputational risk. Modeling and measurement
approaches for quantifying risk and capital demand are implemented across the major risk classes.
• Monitoring, stress testing tools and escalation processes are in place for key capital and liquidity
thresholds and metrics.
• Systems, processes and policies are critical components of Deutsche Bank’s risk management
capability.
• Recovery planning provides for the escalation path for crisis management governance and supplies
Senior Management with a list of actions designed to improve the capital and liquidity positions in a
stress event.
• Resolution planning is closely supervised by the BaFin. It provides for a strategy to manage Deutsche
Bank in case of default. It is designed to prevent the need for tax payer bailout and strengthen financial
stability by the continuation of critical services delivered to the wider economy.
Risk Governance
From a supervisory perspective, Deutsche Bank’s operations throughout the world are regulated and
supervised by relevant authorities in each of the jurisdictions in which it conducts business. Such regulation
focuses on licensing, capital adequacy, liquidity, risk concentration, conduct of business as well as
organization and reporting requirements. The BaFin and the Deutsche Bundesbank (the German central
bank) act in cooperation as Deutsche Bank’s primary supervisors to ensure its compliance with the German
Banking Act and other applicable laws and regulations as well as, from January 1, 2014, the CRR/CRD 4
framework, as implemented into German law, as applicable.
German banking regulators assess Deutsche Bank’s capacity to assume risk in several ways, which are
described in more detail in section “—Regulatory Capital”.
From an internal governance perspective, Deutsche Bank has several layers of management to provide
cohesive risk governance:
• The Supervisory Board is required to be informed regularly and – as necessary – on special
developments in Deutsche Bank’s risk situation, risk management and risk controlling, as well as on its
reputation and material litigation cases. Deutsche Bank has formed various committees to handle
specific tasks.
• At the meetings of the Risk Committee, the Management Board reports on credit, market, country,
liquidity, refinancing, operational, strategic, regulatory as well as litigation and reputational risks. It also
reports on credit portfolios, loans requiring a Supervisory Board resolution pursuant to law or the Articles
of Association, questions of capital resources and matters of special importance due to the risks they
entail. The Risk Committee deliberates with the Management Board on issues of the aggregate risk
disposition and the risk strategy.
212
• The Integrity Committee monitors the Management Board’s measures to promote the company’s
compliance with legal requirements, authorities’ regulations and the company’s own in-house policies. It
also reviews the Bank’s Code of Business Conduct and Ethics and provides precautionary monitoring
and strategic analysis of the Bank’s legal and reputational risks.
• The Audit Committee monitors, among other matters, the effectiveness of the risk management
system, particularly the internal control system and the internal audit system.
• Deutsche Bank’s Management Board provides overall risk and capital management supervision for the
consolidated Group and is exclusively responsible for day-to-day management of the company with the
objective of creating sustainable value in the interest of its shareholders, employees and other
stakeholders. The Management Board is responsible for defining and implementing business and risk
strategies, as well as establishing the alignment of Deutsche Bank’s overall performance with its
business and risk strategy. The Management Board has delegated certain functions and responsibilities
to relevant senior governance committees to support the fulfillment of these responsibilities, in
particular to the Capital and Risk Committee (“CaR”) and Risk Executive Committee (“Risk ExCo”)
whose roles are described in more detail below.
For further information on how Deutsche Bank attempts to ensure that its overall performance is aligned to its
risk strategy, please see the sections “—Risk Appetite and Capacity” and “—Strategic and Capital Plan” below.
Risk Management Governance Structure of the Deutsche Bank Group
Supervisory Board
Audit Committee
Risk Committee
Integrity Committee
Monitors the effectiveness of the risk
management system, particularly of the
internal control system and the internal
audit system.
Advises on overall risk appetite and
risk strategy and monitors strategy
implementation by the management.
Discusses the risk strategy, key risk
topics and portfolios.
Monitors compliance with legal
requirements, authorities’ regulation and
in-house policies. Precautionary monitoring
and strategic analysis of legal and
reputational risk.
Management Board
Capital & Risk Committee
Risk Executive Committee
Integrated planning and monitoring of
Deutsche Bank’s risk profile and capital
capacity as well as defining the Internal
Capital Adequacy Assessment Process
Identification, analysis and mitigation
of risks, risk policy, organization and
governance of risk management and dayto-day risk and capital management
Specialized sub-committees
Specialized sub-committees
Information / Proposals
Risk Strategy / Appetite / Decisions
Overall Risk and Capital Management Supervision
The following functional committees are central to the management of risk in Deutsche Bank:
• The CaR oversees and controls integrated planning and monitoring of Deutsche Bank’s risk profile and
capital capacity, providing an alignment of risk appetite, capital requirements and funding/liquidity needs
with Group, divisional and sub-divisional business strategies. It provides a platform to discuss and agree
strategic issues impacting capital, funding and liquidity among Risk Management, Finance and the
business divisions. The CaR initiates actions and/or makes recommendations to the Management Board.
It is also responsible for monitoring Deutsche Bank’s risk profile against its risk appetite on a regular
basis and ensuring escalation or other actions are taken. The CaR monitors the performance of
Deutsche Bank’s risk profile against early warning indicators and recovery triggers, and provides
recommendations to the Management Board to invoke defined process and/or actions under the
recovery governance framework if required.
• Deutsche Bank’s Risk ExCo, as the most senior functional committee of its risk management, identifies,
controls and manages all risks including risk concentrations at Group level, and is a center of expertise
concerning all risk related topics of the business divisions. It is responsible for risk policy, the
213
organization and governance of risk management and oversees the execution of risk and capital
management including identification, analysis and risk mitigation, within the scope of the risk and capital
strategy (Risk and Capital Demand Plan) approved by the Management Board. The Risk ExCo is
supported by sub-committees that are responsible for dedicated areas of risk management, including
several policy committees, the Portfolio Risk Steering Committee (“PRSC”) and the Group Reputational
Risk Committee.
• The PRSC supports the Risk ExCo and the CaR with particular emphasis on the management of Groupwide risk patterns. The PRSC, under a delegation of authority from the CaR has responsibility for the
day-to-day oversight and control of Deutsche Bank’s Internal Capital Adequacy Assessment Process.
The PRSC also oversees the inventory of stress tests used for managing Deutsche Bank’s risk appetite,
reviews the results and proposes management action, if required. It monitors the effectiveness of the
stress test process and drives continuous improvement of Deutsche Bank’s stress testing framework. It
is supported by a dedicated Stress Testing Working Group which has the responsibility for the definition
of the Group-wide stress test scenarios, maintaining common standards and consistent scenarios
across risk types, and reviewing the group-wide stress test results.
The Living Wills Committee is the dedicated sub-committee of the CaR with focus on recovery and
resolution planning. It oversees the implementation of Deutsche Bank’s recovery and resolution plans and
enhancements to the Group’s operational readiness to respond to severe stress or the threat of a severe
stress.
Multiple members of the CaR are also members of the Risk ExCo which facilitates the information flow
between the two committees.
Deutsche Bank’s Chief Risk Officer (“CRO”), who is a member of the Management Board, is responsible
for the identification, assessment and reporting of risks arising within operations across all business and all
risk types, and has direct management responsibility for the following risk management functions: Credit
Risk Management, Market Risk Management, Operational Risk Management and Liquidity Risk Control.
These are established with the mandate to:
• Support that the business within each division is consistent with the risk appetite that the CaR has set
within a framework established by the Management Board;
• Formulate and implement risk and capital management policies, procedures and methodologies that are
appropriate to the businesses within each division;
• Approve credit, market and liquidity risk limits;
• Conduct periodic portfolio reviews to keep the portfolio of risks within acceptable parameters; and
• Develop and implement risk and capital management infrastructures and systems that are appropriate
for each division.
In addition, dedicated regional Chief Risk Officers for Germany, for the Americas and for Asia-Pacific, and
divisional Chief Risk Officers for DeAWM and NCOU have been appointed to establish a holistic risk
management coverage.
The heads of the aforementioned risk management functions as well as the regional and divisional Chief
Risk Officers have a direct reporting line into the CRO.
Furthermore, several teams within the risk management functions cover overarching aspects of risk
management. Their mandate is to provide an increased focus on holistic risk management and cross-risk
oversight to further enhance Deutsche Bank’s risk portfolio steering. Key objectives are:
• Drive key strategic cross-risk initiatives and establish greater cohesion between defining portfolio
strategy and governing execution, including regulatory adherence;
• Provide a strategic and forward-looking perspective on the key risk issues for discussion at senior levels
within the bank (risk appetite, stress testing framework);
• Strengthen risk culture in the bank; and
• Foster the implementation of consistent risk management standards.
Deutsche Bank’s Finance and Group Audit operates independently of both its business divisions and of its
Risk function. The role of the Finance department is to help quantify and verify the risk that Deutsche Bank
assumes and maintain the quality and integrity of its risk-related data. Group Audit examines, evaluates and
reports on the adequacy of both the design and effectiveness of the systems of internal control including
the risk management systems.
214
The integration of the risk management of Deutsche Bank’s subsidiary Deutsche Postbank AG is promoted
through harmonized processes for identifying, assessing, managing, monitoring, and communicating risk,
the strategies and procedures for determining and safe guarding risk-bearing capacity, and corresponding
internal control procedures. Key features of the joint governance are:
• Functional reporting lines from the Postbank Risk Management to Deutsche Bank Risk;
• Participation of voting members from Deutsche Bank from the respective risk functions in Postbank’s
key risk committees and vice versa; and
• Implementation of key Group risk policies at Postbank.
The key risk management committees of Postbank, in all of which Postbank’s Chief Risk Officer as well as
senior risk managers of Deutsche Bank are voting members, are:
• The Bank Risk Committee, which advises Postbank’s Management Board with respect to the
determination of overall risk appetite and risk allocation;
• The Credit Risk Committee, which is responsible for limit allocation and the definition of an appropriate
limit framework;
• The Market Risk Committee, which decides on limit allocations as well as strategic positioning of
Postbank’s banking and trading book and the management of liquidity risk;
• The Operational Risk Management Committee, which defines the appropriate risk framework as well as
the capital allocation for the individual business areas; and
• The Model and Validation Risk Committee, which monitor validation of all rating systems and risk
management models.
The main focus of this work, taking the legal framework into account, is to comply with the agreed
regulatory roadmap and to further develop Deutsche Bank’s joint risk management infrastructure. In 2013,
the group-wide AMA model for operational risk was approved by the regulator to be used in Postbank.
Moreover, large clients are now centrally managed on Deutsche Bank’s credit platform.
Risk Culture
Deutsche Bank seeks to promote a strong risk culture throughout its organization. A strong risk culture is
designed to help reinforce Deutsche Bank’s resilience by encouraging a holistic approach to the
management of risk and return throughout its organization as well as the effective management of its risk,
capital and reputational profile. Deutsche Bank actively takes risks in connection with its business and as
such the following principles underpin risk culture within its group:
• Risk is taken within a defined risk appetite;
• Every risk taken needs to be approved within the risk management framework;
• Risk taken needs to be adequately compensated; and
• Risk should be continuously monitored and managed.
Employees at all levels are responsible for the management and escalation of risks. Deutsche Bank expects
employees to exhibit behaviors that support a strong risk culture. To promote this Deutsche Bank’s policies
require that behavior assessment is incorporated into its performance assessment and compensation
processes. Deutsche Bank has communicated the following risk culture behaviors through various
communication vehicles:
• Being fully responsible for Deutsche Bank’s risks;
• Being rigorous, forward looking and comprehensive in the assessment of risk;
• Inviting, providing and respecting challenges;
• Trouble shooting collectively; and
• Placing Deutsche Bank and its reputation at the heart of all decisions.
To reinforce these expected behaviors and strengthen Deutsche Bank’s risk culture, it conducts a number
of group-wide activities. Deutsche Bank’s Board members and senior management frequently
communicate the importance of a strong risk culture to support a consistent tone from the top. To further
strengthen this message, Deutsche Bank has reinforced its targeted training. In 2013, Deutsche Bank’s
employees attended more than 114,000 mandatory training modules globally including, for example, the
Code of Business Conduct & Ethics, Fraud Awareness and An Introduction to MaRisk. As part of Deutsche
Bank’s ongoing efforts to strengthen its risk culture, it reviews its training suite regularly to develop further
modules or enhance existing components.
215
In addition, along with other measures to strengthen its performance management processes, Deutsche
Bank has designed and implemented a process to tie formal measurement of risk culture behaviors to its
employee performance assessment, promotion and compensation processes. This process has been in
place in Deutsche Bank’s CB&S and GTB divisions since 2010 and has subsequently been rolled out to the
DeAWM, NCOU and Risk divisions. Deutsche Bank plans to achieve a full bank wide roll out in 2014. This
process is designed to further strengthen employee accountability. Further measures are already being
reviewed and will be added to the program in 2014.
Risk Appetite and Capacity
Risk appetite expresses the level of risk that Deutsche Bank is willing to assume in order to achieve its
business objectives. Risk capacity is defined as the maximum level of risk Deutsche Bank can assume in
both normal and distressed situations before breaching regulatory constraints and its obligations to
stakeholders.
Risk appetite is an integral element in Deutsche Bank’s business planning processes via its Risk and Capital
Demand Plan, with the aim to create a more holistic perspective on capital, funding and risk-return
considerations. Risk appetite is set within Deutsche Bank’s risk capacity in which Deutsche Bank considers
its capital, assets and borrowing capacities. Deutsche Bank hereby leverages the stress testing process to
also consider stressed market conditions. Top-down risk appetite serves as the limit for risk-taking for the
bottom-up planning from the business functions.
The Management Board reviews and approves the risk appetite and capacity on an annual basis with the
aim of ensuring that it is consistent with Deutsche Bank’s Group strategy, business and regulatory
environment and stakeholders’ requirements.
In order to determine its risk appetite and capacity, Deutsche Bank sets different group level triggers and
thresholds on a forward looking basis and defines the escalation requirements for further action. Deutsche
Bank assigns risk metrics that are sensitive to the material risks to which it is exposed and which are able
to function as key indicators of financial health. In addition to that, Deutsche Bank links its risk and recovery
management governance framework with the risk appetite framework. In detail, Deutsche Bank assesses a
suite of metrics under stress (Common Equity Tier 1 (“CET 1”) capital ratio, Internal Capital Adequacy ratio,
Stressed Net Liquidity Position (“SNLP”)) within the regularly performed benchmark and more severe
group-wide stress tests and compare them to the Red-Amber-Green (“RAG”) levels as defined in the table
below.
(unaudited)
RAG levels
Normal . . . . . . . . . . . . . . . . . . . .
Critical . . . . . . . . . . . . . . . . . . . . .
Crisis . . . . . . . . . . . . . . . . . . . . . .
CET 1 capital ratio
> 8.0%
8.0% – 5.5%
< 5.5%
Internal capital adequacy
> 135%
135% – 120%
< 120%
Net liquidity position
> € 5 billion
€ 5 billion – € 0 billion
< € 0 billion
In the event that Deutsche Bank’s desired risk appetite is breached under either normal or stressed
scenarios, a predefined escalation governance matrix is applied so these breaches are highlighted to the
respective committees, and ultimately to the Chief Risk Officer and the Management Board. Amendments
to the risk appetite and capacity must be approved by the Chief Risk Officer or the full Management Board,
depending on their significance.
Strategic and Capital Plan
Deutsche Bank conducts an annual strategic planning process which lays out the development of its future
strategic direction as a group and for its business areas/units. The strategic plan aims to create a holistic
perspective on capital, funding and risk under risk-return considerations. This process translates Deutsche
Bank’s long term strategic targets into measurable short to medium term financial targets and enables intrayear performance monitoring and management. Thereby Deutsche Bank aims to identify optimal growth
options by considering the risks involved and the allocation of available capital resources to drive sustainable
performance. Risk specific portfolio strategies complement this framework and allow for an in-depth
implementation of the risk strategy on portfolio level, addressing risk specifics including risk concentrations.
The strategic planning process consists of two phases: a top-down target setting and a bottom-up
substantiation.
In a first phase – the top down target setting – Deutsche Bank’s key targets for profit and loss (including
revenues and costs), capital supply, and capital demand as well as leverage and funding and liquidity are
discussed for the group and the key business areas by the Group Executive Committee. In this process, the
216
targets for the next three years are based on Deutsche Bank’s global macro-economic outlook and the
expected regulatory framework. Subsequently, the targets are approved by the Management Board.
In a second phase, the top-down objectives are substantiated bottom-up by detailed business unit plans,
which for the first year consist of a month by month operative plan; years two and three are annual plans.
The proposed bottom-up plans are reviewed and challenged by Finance and Risk and are discussed
individually with the business heads. Thereby, the specifics of the business are considered and concrete
targets decided in line with Deutsche Bank’s strategic direction. Stress tests complement the strategic plan
to also consider stressed market conditions.
The resulting Strategic and Capital Plan is presented to the Group Executive Committee and the
Management Board for discussion and approval. Following the approval of the Management Board, the final
plan is presented to the Supervisory Board.
The Strategic and Capital Plan is designed to support Deutsche Bank’s vision of being a leading clientcentric global universal bank and aims to ensure:
• Balanced risk adjusted performance across business areas and units;
• High risk management standards with focus on risk concentrations;
• Compliance with regulatory requirements;
• Strong capital and liquidity position; and
• Stable funding and liquidity strategy allowing for the business planning within the liquidity risk appetite
and regulatory requirements.
The Strategic and Capital Planning process allows Deutsche Bank to:
• Set earnings and key risk and capital adequacy targets considering the bank’s strategic focus and
business plans;
• Assess its risk-bearing capacity with regard to internal and external requirements (i.e., economic capital
and regulatory capital); and
• Apply an appropriate stress test to assess the impact on capital demand, capital supply and liquidity.
The specific limits e.g., regulatory capital demand and economic capital are derived from the Strategic and
Capital Plan to align risk, capital and performance targets at all relevant levels of the organization.
The targets are monitored on an ongoing basis in appropriate management committees. Any projected
shortfall from targets is discussed together with potential mitigating strategies seeking to ensure that
Deutsche Bank remains on track to achieve its targets. Amendments to the strategic and capital plan must
be approved by the Management Board.
In September 2012, Deutsche Bank communicated a new strategic direction “Strategy 2015+”. With its
business franchise strengthened, Deutsche Bank aspires a capital position of above 10 % CET 1 capital
ratio by first quarter 2015, under full application of CRR/CRD 4 rules. This goal is based on retained earnings
assumptions, reflecting not only strong revenue generation in targeted growth areas but also on the
delivery of Deutsche Bank’s announced Operational Excellence (OpEx) Program to target annual cost
savings of € 4.5 billion by 2015, achieving a cost-income ratio of below 65 % for Deutsche Bank’s core
businesses. Deutsche Bank’s capital ratio target is further supported by risk reduction measures, notably in
NCOU.
On May 18, 2014, Deutsche Bank reaffirmed its commitment to its Strategy 2015+, and provided updated
financial targets and further details of its growth strategy. For further information, see the section
“Business—Business Strategy” of this Prospectus.
Recovery and Resolution Planning
The 2007/2008 financial crisis exposed banks and the broader financial market to unprecedented pressures.
These pressures led to significant support for certain banks by their governments and to large scale
interventions by central banks. The crisis also forced many financial institutions to significantly restructure
their businesses and strengthen their capital, liquidity and funding bases. This crisis revealed that many
financial institutions were insufficiently prepared for a fast-evolving systemic crisis and thus were unable to
act and respond in a way that would avoid potential failure and prevent material adverse impacts on the
financial system and ultimately the economy and society.
In response to the crisis, the Financial Stability Board (“FSB”) has published a list of global systematically
important financial banks (“G-SIBs”) and has advised its member institutions to mandate and support the
217
development of recovery and resolution plans within G-SIBs. Corresponding legislation has been enacted in
several jurisdictions, including Germany and the U.S. As Deutsche Bank has been identified as one of the
G-SIBs, it has developed the Group’s recovery plan (Recovery Plan) and submitted this to the relevant
regulators. The Recovery Plan is updated at least annually and reflects changes in the business and the
regulatory requirements.
The Recovery Plan prepares Deutsche Bank to restore its financial strength and viability during an extreme
stress situation. The Recovery Plan’s more specific purpose is to outline how Deutsche Bank can respond
to a financial stress situation that would significantly impact its capital or liquidity position. Therefore it lays
out a set of defined actions aimed to protect Deutsche Bank, its customers and the markets and prevent a
potentially more costly resolution event. In line with regulatory guidance, Deutsche Bank has identified a
wide range of recovery measures that will mitigate multiple stress scenarios which would have severe
capital and liquidity impacts on Deutsche Bank. These scenarios originate from both idiosyncratic and
market-wide events. Deutsche Bank’s governance structures and defined processes will help to promote
its monitoring, escalation, decision-making and implementation of recovery options in the occurrence of a
crisis event.
The Recovery Plan’s key objective is to help Deutsche Bank to recover from a severe situation by selecting
actions that it needs to take to stay both sufficiently capitalized and funded. This plan extends Deutsche
Bank’s risk management framework and can be executed in extreme scenarios where crises may threaten
Deutsche Bank’s survival (i.e., substantial loss of capital or inability to access market liquidity when
needed). The Management Board determines when a Recovery Plan has to be invoked and which recovery
measures are deemed appropriate.
The Recovery Plan is designed to cover multiple regulations including those of the FSB, EU, Germany and
other key jurisdictions. Furthermore, the plan incorporates feedback from extensive discussions with
Deutsche Bank’s Crisis Management Group (CMG). This CMG is formed by key home and host authorities
and is led by the BaFin and Bundesbank as Deutsche Bank’s home banking authorities. Deutsche Bank
reports to this CMG with the objective of enhancing preparedness for, and facilitating the management and
resolution of a cross-border financial crisis affecting it. This CMG is also intended to cooperate closely with
authorities in other jurisdictions where firms have a systemic presence.
Deutsche Bank is working closely with the BaFin to support it in its mandate to create its Group Resolution
Plan as set out in Section 47g KWG and also with its U.S. regulator on the detailed plan of the U.S.
operations resolution activities, including in particular the potential practicalities that could be encountered.
This U.S. Resolution Plan is designed to prepare for an orderly resolution of Deutsche Bank’s U.S.
operations in the event of severe distress or insolvency. The U.S. Resolution Plan complies with the
requirements specified in Section 165(d) of the Dodd-Frank rule which requires all Bank Holding
Companies, foreign banks with U.S. branches and designated systemically important financial institutions,
with more than U.S. $ 50 billion of assets to submit annual plans to facilitate a “rapid and orderly
resolution” in the event of material financial distress or failure without material governmental support.
At the core of the U.S. Resolution Plan are Critical Operations (“COs”), Core Business Lines (“CBLs”) and
Material Legal Entities (“MLEs”). The U.S. Resolution Plan demonstrates how COs, as identified by the Fed
and FDIC, can be maintained during distress and resolution, alleviating any potential systemic impact on
U.S. financial stability. The U.S. Resolution Plan also projects whether the CBLs, depending on Deutsche
Bank’s definition, will be sold or wound down in resolution. Finally, the U.S. Resolution Plan lays out the
resolution strategy for each MLE, defined as those entities significant to the activities of a critical operation
or core business line. Key factors addressed in the U.S. Resolution Plan include how to ensure:
• continued support for the operations from other U.S. and non-U.S. legal entities as well as from third
parties such as payment servicers, exchanges and key vendors;
• availability of funding from both external and internal sources;
• retention of key employees during resolution; and
• efficient and coordinated close-out of cross-border contracts.
The U.S. Resolution Plan is drafted in coordination with the U.S. businesses and infrastructure groups so
that it accurately reflects the business, critical infrastructure and key interconnections.
218
Risk Assessment and Reporting
Risk Metrics
Deutsche Bank uses a broad range of quantitative and qualitative methodologies for assessing and
managing risks. As a matter of policy, Deutsche Bank continually assesses the appropriateness and the
reliability of its quantitative tools and metrics in light of its changing risk environment. Some of these tools
are common to a number of risk categories, while others are tailored to the particular features of specific
risk categories. The advanced internal tools and metrics Deutsche Bank currently uses to measure, manage
and report its risks are:
• RWA equivalent. This is defined as total risk-weighted assets (“RWA”) plus a theoretical amount for
specific allocated Common Equity Tier 1 capital deduction items if these were converted into RWA.
RWA form the key factor in determining the bank’s regulatory Capital Adequacy as reflected in the
Common Equity Tier 1 capital ratio. RWA equivalents are used to set targets for the growth of Deutsche
Bank’s businesses and monitored within its management reporting systems. As a general rule, RWA
have been calculated in accordance with the then valid Basel 2.5 European (CRD) and German legislation
(SolvV), as applicable until December 31, 2013. However, Deutsche Bank also performed additional
RWA equivalent calculations under pro forma CRR/CRD 4 requirements to be used within its forward
looking risk and capital planning processes.
• Expected loss. Deutsche Bank uses expected loss as a measure of its credit and operational risk.
Expected loss is a measurement of the loss Deutsche Bank can expect induced by defaults within a
one-year period from these risks as of the respective reporting date, based on its historical loss
experience. When calculating expected loss for credit risk, Deutsche Bank takes into account credit risk
ratings, collateral, maturities and statistical averaging procedures to reflect the risk characteristics of its
different types of exposures and facilities. All parameter assumptions are based on statistical
considerations of up to nine years based on Deutsche Bank’s internal default and loss history as well as
external benchmarks. Deutsche Bank uses expected loss as a tool of its risk management process and
as part of its management reporting systems. Deutsche Bank also considers the applicable results of
the expected loss calculations as a component of its collectively assessed allowance for credit losses
included in its financial statements. For operational risk Deutsche Bank determines the expected loss
from statistical averages of its internal loss history, recent risk trends as well as forward looking
estimates.
• Return on risk-weighted assets (“RoRWA”). In times of regulatory capital constraints, RoRWA has
become an important metric to assess the profitability of Deutsche Bank’s client relationships, in
particular for credit risk. RoRWA is currently the primary performance measure and as such attracts
more attention than the previously used RARoC profitability measure based on economic capital.
• Value-at-risk. Deutsche Bank uses the value-at-risk approach to derive quantitative measures for its
trading book market risks under normal market conditions and by means of the stressed value-at-risk
under stressed market conditions. Deutsche Bank’s respective value-at-risk figures play a role in both
internal and external (regulatory) reporting. For a given portfolio, value-at-risk measures the potential
future loss (in terms of market value) that, under normal/stressed market conditions, is not expected to
be exceeded with a defined confidence level in a defined period. The value-at-risk for a total portfolio
represents a measure of Deutsche Bank’s diversified market risk (aggregated, using pre-determined
correlations) under normal/stressed market conditions in that portfolio.
• Economic capital. Economic capital measures the amount of capital Deutsche Bank needs to absorb
very severe unexpected losses arising from its exposures. “Very severe” in this context means that
economic capital is set at a level to cover with a probability of 99.98 % the aggregated unexpected
losses within one year. Deutsche Bank calculates economic capital for the default, transfer and
settlement risk elements of credit risk, for market risk including trading default risk, for operational risk
and for business risk.
Stress testing
Deutsche Bank has a strong commitment to stress testing performed on a regular basis in order to assess
the impact of a severe economic downturn on its risk profile and financial position. These exercises
complement traditional risk measures and represent an integral part of Deutsche Bank’s strategic and
capital planning process. Deutsche Bank’s stress testing framework comprises regular Group-wide stress
tests based on internally defined benchmark and more severe macroeconomic global downturn scenarios.
Deutsche Bank includes all material risk types such as credit, market, operational, business and liquidity risk
into its stress testing exercises. The time-horizon of internal stress tests is one year. Deutsche Bank’s
methodologies undergo regular scrutiny from internal experts as well as regulators to review whether they
219
correctly capture the impact of a given stress scenario. These analyses are complemented by portfolio- and
country-specific stress tests as well as regulatory requirements such as an annual reverse stress test.
Moreover, a capital planning stress test is performed annually to assess the viability of Deutsche Bank’s
capital plan in adverse circumstances and to demonstrate a clear link between risk appetite, business
strategy, capital plan and stress testing. An integrated infrastructure allows Deutsche Bank to process adhoc scenarios that simulate potential imminent financial or geopolitical shocks.
The initial phase of Deutsche Bank’s internal stress tests consists of defining a macroeconomic downturn
scenario by dbResearch in cooperation with business specialists. dbResearch monitors the political and
economic development around the world and maintains a macro-economic heat map that identifies
potentially harmful scenarios. Based on quantitative models and expert judgments, economic parameters
such as foreign exchange rates, interest rates, GDP growth or unemployment rates are set accordingly to
reflect the impact on Deutsche Bank’s business. The scenario parameters are translated into specific risk
drivers by subject matter experts in the risk units. Using internal models metrics such as RWA, losses and
economic capital under stress are computed by risk type. These results are aggregated to Group level, and
key metrics such as the SNLP, the CET 1 capital ratio and Internal Capital Adequacy ratio under stress are
derived. Stress testing results and the underlying scenarios are reviewed across risk types on various levels
by senior managers within Risk, Finance and the business units. Comparing them against Deutsche Bank’s
defined risk appetite, senior management decides on specific mitigation actions to remediate the stress
impact in alignment with the overall strategic and capital plan if certain limits are breached. The results also
feed into the annual recovery planning which is crucial for the recoverability of the bank in times of crisis.
The outcome is presented to Senior Management up to the Management Board to raise awareness on the
highest level as it provides key insights into specific business vulnerabilities and contributes to the overall
risk profile assessment of the bank. In 2013 Deutsche Bank remained well capitalized within its internal
stress testing program under various severe stress events and maintained the availability of potential
recovery measures in these scenarios, if a capital shortfall was perceived by the stress testing program.
Stress Testing Framework of Deutsche Bank Group
Finance:
Capital plan
Senior
Management:
No action required
DB Research:
Risk Units:
Risk Units:
Central Function:
Central Function:
Scenario definition
Parameter translation
Calculation engines
Aggregation of
results
Comparison against
risk appetite
DB Research defines
scenario with several
risk parameters such
as FX, interest rates,
growth, etc.
Scenario parameters
are translated into
risk-specific drivers
Teams run riskspecific calculation
engines to arrive at
stressed results
Calculation of
aggregated stress
impact based on
capital plan for
several metrics such
as RWA, CET1, etc.
Stress results are
reviewed by
representatives from
Risk, Finance and
the businesses and
compared against
risk appetite and in
case of breaches
mitigation actions
are considered
Senior
Management:
Mitigation actions
Strategic decision
on adequate risk
mitigation from a
catalogue of predetermined
alternatives
Risk Reporting and Measurement Systems
Deutsche Bank has centralized risk data and systems supporting regulatory reporting and external
disclosures, as well as internal management reporting for credit, market, operational, business, reputational,
legal and liquidity risk. The risk infrastructure incorporates the relevant legal entities and business divisions
and provides the basis for tailor-made reporting on risk positions, capital adequacy and limit utilization to the
relevant functions on a regular and ad-hoc basis. Established units within Finance and Risk assume
responsibility for measurement, analysis and reporting of risk while promoting sufficient quality and integrity
of risk-related data. Deutsche Bank’s risk management systems are reviewed by Group Audit following a
risk-based audit approach. As a consequence Deutsche Bank’s Management Board believes, for the
purpose of Article 435 of the CRR, that Deutsche Bank’s risk management systems are adequate with
regard to its risk profile and strategy.
The main reports on risk and capital management that are used to provide the central governance bodies
with information relating to Group Risk Exposures are the following:
• Deutsche Bank’s Risk and Capital Profile is presented monthly to the CaR and the Management Board
and is subsequently submitted to the Risk Committee of the Supervisory Board for information. It
comprises an overview of the current risk, capital and liquidity status of the Group, also incorporating
information on regulatory capital and economic capital adequacy.
• An overview of Deutsche Bank’s capital, liquidity and funding is presented to the CaR by Group Capital
Management and the Group Treasurer every month. It comprises information on key metrics including
220
Core Tier 1 capital (under CRR/CRD 4 Common Equity Tier 1 capital) and the CRR/CRD 4 leverage ratio,
as well as an overview of Deutsche Bank’s current funding and liquidity status, the liquidity stress test
results and contingency measures.
• Group-wide macroeconomic stress tests are performed twice per quarter and reported to the PRSC.
They are supplemented, as required, by ad-hoc stress tests at Group level.
• A reverse stress test is performed annually in order to challenge Deutsche Bank’s business model to
determine the severity of scenarios that would cause it to become unviable. Such a reverse stress test
is based on a hypothetical macroeconomic scenario and takes into account severe impacts of major
risks on Deutsche Bank’s results. Comparing the hypothetical macroeconomic scenario to the current
economic environment that would be necessary to result in Deutsche Bank‘s non-viability according to
the reverse stress, Deutsche Bank believes that the probability of occurrence of such a hypothetical
macroeconomic scenario is extremely low. Given the extremely low probability of the Reverse Stress
Test scenario, Deutsche Bank does not believe that its business continuity is at risk.
The above reports are complemented by a suite of other standard and ad-hoc management reports of Risk
and Finance, which are presented to several different senior committees responsible for risk and capital
management at Group level.
Risk Inventory
Deutsche Bank faces a variety of risks as a result of its business activities, the most significant of which are
described below. Credit risk, market risk and operational risk attract regulatory capital. As part of Deutsche
Bank‘s internal capital adequacy assessment process, it calculates the amount of economic capital from
credit, market, operational and business risk to cover risks generated from its business activities taking into
account diversification effects across those risk types. Furthermore, Deutsche Bank’s economic capital
framework implicitly covers additional risks, e.g., reputational risk and refinancing risk, for which no
dedicated EC models exist. Liquidity risk is excluded from the economic capital calculation since it is
covered separately.
Credit Risk
Credit risk arises from all transactions where actual, contingent or potential claims against any counterparty,
borrower, obligor or issuer (which Deutsche Bank refers to collectively as “counterparties”) exist, including
those claims that Deutsche Bank plans to distribute (see below in the more detailed section “—Credit
Risk”). These transactions are typically part of Deutsche Bank’s traditional nontrading lending activities
(such as loans and contingent liabilities), traded bonds and debt securities available for sale or its direct
trading activity with clients (such as OTC derivatives, FX forwards and Forward Rate Agreements). Carrying
values of equity investments are also disclosed in the section “—Credit Risk”. Deutsche Bank manages the
respective positions within its market risk and credit risk frameworks.
Deutsche Bank distinguishes between three kinds of credit risk:
• Default risk, the most significant element of credit risk, is the risk that counterparties fail to meet
contractual obligations in relation to the claims described above;
• Settlement risk is the risk that the settlement or clearance of a transaction may fail. Settlement risk
arises whenever the exchange of cash, securities and/or other assets is not simultaneous leaving
Deutsche Bank exposed to a potential loss should the counterparty default; and
• Country risk is the risk that Deutsche Bank may experience unexpected default or settlement risk and
subsequent losses, in a given country, due to a range of macro-economic or social events primarily
affecting counterparties in that jurisdiction including: a material deterioration of economic conditions,
political and social upheaval, nationalization and expropriation of assets, government repudiation of
indebtedness, or disruptive currency depreciation or devaluation. Country risk also includes transfer risk
which arises when debtors are unable to meet their obligations owing to an inability to transfer assets to
non-residents due to direct sovereign intervention.
Market Risk
Market risk arises from the uncertainty concerning changes in market prices and rates (including interest
rates, equity prices, foreign exchange rates and commodity prices), the correlations among them and their
levels of volatility. Deutsche Bank differentiates between three different types of market risk:
• Trading market risk arises primarily through the market-making activities of the Corporate Banking &
Securities division (CB&S). This involves taking positions in debt, equity, foreign exchange, other
securities and commodities as well as in equivalent derivatives.
221
• Trading default risk arises from defaults and rating migrations relating to trading instruments.
• Nontrading market risk arises from market movements, primarily outside the activities of Deutsche
Bank’s trading units, in its banking book and from off-balance sheet items. This includes interest rate
risk, credit spread risk, investment risk and foreign exchange risk as well as market risk arising from
Deutsche Bank’s pension schemes, guaranteed funds and equity compensation. Nontrading market risk
also includes risk from the modeling of client deposits as well as savings and loan products.
Operational Risk
Operational risk means the risk of loss resulting from inadequate or failed internal processes, people and
systems or from external events, and includes legal risk. Operational risk excludes business and
reputational risk.
Liquidity Risk
Liquidity risk is the risk arising from Deutsche Bank’s potential inability to meet all payment obligations
when they come due or only being able to meet these obligations at excessive costs.
Business Risk
Business risk describes the risk Deutsche Bank assumes due to potential changes in general business
conditions, such as its market environment, client behavior and technological progress. This can affect
Deutsche Bank’s results if it fails to adjust quickly to these changing conditions. At the end of 2012,
Deutsche Bank introduced an enhanced economic capital model to improve strategic risk modeling being a
subcategory of business risk. This model is now used in the monthly EC calculations providing a better link
between economic capital and the capital planning process.
Reputational Risk
Within its risk management processes, Deutsche Bank defines reputational risk as the risk that publicity
concerning a transaction, counterparty or business practice involving a client will negatively impact the
public’s trust in Deutsche Bank’s organization.
Deutsche Bank’s reputational risk is governed by the Reputational Risk Management Program (“RRM
Program”). The RRM Program was established to provide consistent standards for the identification,
escalation and resolution of reputational risk issues that arise from transactions with clients or through
different business activities. Primary responsibility for the identification, escalation and resolution of
reputational risk issues resides with the business divisions. Each employee is under an obligation, within
the scope of his/her activities, to analyze and assess any imminent or intended transaction in terms of
possible risk factors in order to minimize reputational risks. If a potential reputational risk is identified, it is
required to be referred for further consideration at a sufficiently senior level within that respective business
division. If issues remain, they should then be escalated for discussion among appropriate senior members
of the relevant Business and Control Groups. Reputational risk issues not addressed to satisfactory
conclusion through such informal discussions must then be escalated for further review and final
determination via the established reputational risk escalation process.
As a subcommittee of the Risk ExCo, the Group Reputational Risk Committee provides review and final
determinations on all reputational risk issues and new client adoptions, where escalation of such issues is
deemed necessary by senior Business and Regional Management, or required under the Group policies and
procedures.
Insurance Specific Risk
Deutsche Bank’s exposure to insurance risk relates to Abbey Life Assurance Company Limited and
Deutsche Bank’s defined benefit pension obligations. There is also some insurance-related risk within the
Pensions and Insurance Risk Markets business. In its risk management framework, Deutsche Bank
considers insurance-related risks primarily as nontrading market risks. Deutsche Bank monitors the
underlying assumptions in the calculation of these risks regularly and seeks risk mitigating measures such
as reinsurances, if it deems this appropriate. Deutsche Bank is primarily exposed to the following insurancerelated risks:
• Longevity risk: the risk of faster or slower than expected improvements in life expectancy on immediate
and deferred annuity products;
• Mortality and morbidity risks: the risks of a higher or lower than expected number of death or disability
claims on insurance products and of an occurrence of one or more large claims;
222
• Expenses risk: the risk that policies cost more or less to administer than expected; and
• Persistency risk: the risk of a higher or lower than expected percentage of lapsed policies.
To the extent that actual experience is less favorable than the underlying assumptions, or it is necessary to
increase provisions due to more onerous assumptions, the amount of capital required in the insurance
entities may increase.
Model Risk
Model Risk is the risk of possible adverse consequences of decisions based on models that are
inappropriate, incorrect, or misused. In this context, a model is defined as a quantitative method, system, or
approach that applies statistical, economic, financial, or mathematical theories, techniques, and
assumptions to process input data into quantitative or qualitative estimates.
Risk Concentration
Risk concentrations refer to clusters of the same or similar risk drivers within specific risk types (intra-risk
concentrations in Credit, Market, Operational risks) as well as across different risk types (inter-risk
concentrations). They could occur within and across counterparties, businesses, regions/countries,
industries and products. The management of concentrations is integrated as part of the management of
individual risk types and monitored on an ongoing basis. The key objective is to avoid any undue
concentrations in the portfolio, which is achieved through a quantitative and qualitative approach, as
follows:
• Intra-risk concentrations are assessed, monitored and mitigated by the individual risk disciplines (Credit,
Market, Operational Risk Management and others). This is supported by limit setting on different levels
according to risk type.
• Inter-risk concentrations are managed through quantitative top-down stress-testing and qualitative
bottom-up reviews, identifying and assessing risk themes independent of any risk type and providing a
holistic view across the bank.
The most senior governance body for the oversight of risk concentrations throughout 2013 was the Cross
Risk Review Committee (now referred to as the Portfolio Risk Steering Committee), which is a
subcommittee of the Capital and Risk Committee and the Risk Executive Committee.
Credit Risk
Deutsche Bank measures and manages its credit risk using the following philosophy and principles:
• Deutsche Bank’s credit risk management function is independent from its business divisions and in each
of its divisions credit decision standards, processes and principles are consistently applied.
• A key principle of credit risk management is client credit due diligence. Deutsche Bank’s client selection
is achieved in collaboration with its business division counterparts who stand as a first line of defense.
• Deutsche Bank aims to prevent undue concentration and tail-risks (large unexpected losses) by
maintaining a diversified credit portfolio. Client-, industry-, country- and product-specific concentrations
are assessed and managed against Deutsche Bank’s risk appetite.
• Deutsche Bank maintains underwriting standards aiming to avoid large directional credit risk on a
counterparty and portfolio level. In this regard Deutsche Bank assumes unsecured cash positions and
actively uses hedging for risk mitigation purposes. Additionally, Deutsche Bank strives to secure its
derivative portfolio through collateral agreements and may additionally hedge concentration risks to
further mitigate credit risks from underlying market movements.
• Every new credit facility and every extension or material change of an existing credit facility (such as its
tenor, collateral structure or major covenants) to any counterparty requires credit approval at the
appropriate authority level. Deutsche Bank assigns credit approval authorities to individuals according to
their qualifications, experience and training, and it reviews these periodically.
• Deutsche Bank measures and consolidates all its credit exposures to each obligor across its
consolidated Group on a global basis that applies, in line with regulatory requirements.
• Deutsche Bank manages credit exposures on the basis of the “one obligor principle”, under which all
facilities to a group of borrowers which are linked to each other (i.e., by one entity holding a majority of
the voting rights or capital of another) are consolidated under one group.
223
• Deutsche Bank has established within Credit Risk Management – where appropriate – specialized teams
for deriving internal client ratings, analyzing and approving transactions, monitoring the portfolio or
covering workout clients. The credit coverage for assets transferred to the NCOU utilizes the expertise
of Deutsche Bank’s core credit organization.
• Deutsche Bank’s credit related activities are governed by its Principles for Managing Credit Risk. These
principles define Deutsche Bank’s general risk philosophy for credit risk and its methods to manage this
risk. The principles define key organizational requirements, roles and responsibilities as well as process
principles for credit risk management and are applicable to all credit related activities undertaken by
Deutsche Bank.
Credit Risk Ratings
A basic and key element of the credit approval process is a detailed risk assessment of each credit-relevant
counterparty. When rating a counterparty Deutsche Bank applies in-house assessment methodologies,
scorecards and its 26-grade rating scale for evaluating the credit-worthiness of its counterparties. The
majority of Deutsche Bank’s rating methodologies are authorized for use within the advanced internal rating
based approach under applicable Basel rules. Deutsche Bank’s rating scale enables it to compare its internal
ratings with common market practice and promotes comparability between different sub-portfolios of the
institution. Several default ratings therein enable Deutsche Bank to incorporate the potential recovery rate
of unsecured defaulted counterparty exposures. Deutsche Bank generally rates its counterparties
individually, though certain portfolios of purchased or securitized receivables are rated on a pool basis.
Ratings are required to be kept up-to-date and documented.
In Deutsche Bank’s retail business, creditworthiness checks and counterparty ratings of the homogenous
portfolio are derived by utilizing an automated decision engine. The decision engine incorporates
quantitative aspects (i.e., financial figures), behavioral aspects, credit bureau information (such as SCHUFA
in Germany) and general customer data. These input factors are used by the decision engine to determine
the creditworthiness of the borrower and, after consideration of collateral, the expected loss as well as the
further course of action required to process the ultimate credit decision. The established rating procedures
Deutsche Bank has implemented in its retail business are based on multivariate statistical methods and are
used to support Deutsche Bank’s individual credit decisions for this portfolio as well as managing the
overall retail portfolio.
The algorithms of the rating procedures for all counterparties are recalibrated frequently on the basis of the
default history as well as other external and internal factors and expert judgments.
Postbank also makes use of internal rating systems authorized for use within the foundation internal rating
based approach under Basel 2.5. All internal ratings and scorings are based on a uniform master scale,
which assigns each rating or scoring result to the default probability determined for that class. Risk
governance is provided by a joint risk committee structure with members from both Postbank and
Deutsche Bank.
Rating Governance
All of Deutsche Bank’s rating methodologies, excluding Postbank, have to be approved by the Group Credit
Policy Committee (“GCPC”), a sub-committee of the Risk Executive Committee, before the methodologies
are used for credit decisions and capital calculation for the first time or before they are significantly
changed. Regulatory approval may be required in addition. The results of the regular validation processes as
stipulated by internal policies have to be brought to the attention of the GCPC, even if the validation results
do not lead to a change. The validation plan for rating methodologies is presented to GCPC at the beginning
of the calendar year and a status update is given on a quarterly basis.
For Postbank, responsibility for implementation and monitoring of internal rating systems effectiveness
rests with Postbank’s Risk Analytics unit and Postbank’s validation committee, chaired by Postbank’s Chief
Credit Risk Officer. All rating systems are subject to Postbank’s Management Board approval. Effectiveness
of rating systems and rating results are reported to the Postbank Management Board on a regular basis.
Joint governance is ensured via a cross committee membership of Deutsche Bank senior managers joining
Postbank committees and vice versa.
Credit Risk Measures
The key credit risk measures Deutsche Bank applies for managing its credit portfolio, including transaction
approval and the setting of risk appetite, are internal limits and credit exposures under these limits. Credit
limits set forth maximum credit exposures Deutsche Bank is willing to assume over specified periods. In
determining the credit limit for a counterparty, Deutsche Bank considers the counterparty’s credit quality by
224
reference to its internal credit rating. Credit limits and credit exposures are both measured on a gross and
net basis where net is derived by deducting hedges and certain collateral from respective gross figures. For
derivatives, Deutsche Bank looks at current market values and the potential future exposure over the
lifetime of a transaction. Deutsche Bank generally also takes into consideration the risk-return
characteristics of individual transactions and portfolios.
Credit Approval and Authority
Credit limits are established by the Credit Risk Management function via the execution of assigned credit
authorities. Credit approvals are documented by the signing of the credit report by the respective credit
authority holders and retained for future reference.
Credit authority is generally assigned to individuals as personal credit authority according to the individual’s
professional qualification and experience. All assigned credit authorities are reviewed on a periodic basis to
help ensure that they are adequate to the individual performance of the authority holder. The results of the
review are presented to the Group Credit Policy Committee.
Where an individual’s personal authority is insufficient to establish required credit limits, the transaction is
referred to a higher credit authority holder or where necessary to an appropriate credit committee such as
the Underwriting Committee. Where personal and committee authorities are insufficient to establish
appropriate limits, the case is referred to the Management Board for approval.
Credit Risk Mitigation
In addition to determining counterparty credit quality and Deutsche Bank’s risk appetite, Deutsche Bank
also uses various credit risk mitigation techniques to optimize credit exposure and reduce potential credit
losses. Credit risk mitigants are applied in the following forms:
• Comprehensive and enforceable credit documentation with adequate terms and conditions.
• Collateral held as security to reduce losses by increasing the recovery of obligations.
• Risk transfers, which shift the probability of default risk of an obligor to a third party including hedging
executed by Deutsche Bank’s Credit Portfolio Strategies Group.
• Netting and collateral arrangements which reduce the credit exposure from derivatives and repo- and
repo-style transactions.
• For hedge accounting treatment please see Note 1 “Significant Accounting Policies and Critical
Accounting Estimates” and Note 37 “Derivatives” to the consolidated financial statements of Deutsche
Bank for the fiscal year 2013 contained in the section “Financial Statements” of this Prospectus.
Collateral Held as Security
Deutsche Bank regularly agrees on collateral to be received from or to be provided to customers in
contracts that are subject to credit risk. Collateral is security in the form of an asset or third-party obligation
that serves to mitigate the inherent risk of credit loss in an exposure, by either substituting the borrower
default risk or improving recoveries in the event of a default. While collateral can be an alternative source of
repayment, it generally does not replace the necessity of high quality underwriting standards.
Deutsche Bank segregates collateral received into the following two types:
• Financial and other collateral, which enables Deutsche Bank to recover all or part of the outstanding
exposure by liquidating the collateral asset provided, in cases where the borrower is unable or unwilling
to fulfill its primary obligations. Cash collateral, securities (equity, bonds), collateral assignments of other
claims or inventory, equipment (i.e., plant, machinery and aircraft) and real estate typically fall into this
category.
• Guarantee collateral, which complements the borrower’s ability to fulfill its obligation under the legal
contract and as such is provided by third parties. Letters of credit, insurance contracts, export credit
insurance, guarantees, credit derivatives and risk participations typically fall into this category.
Deutsche Bank’s processes seek to ensure that the collateral it accepts for risk mitigation purposes is of
high quality. This includes seeking to have in place legally effective and enforceable documentation for
realizable and measureable collateral assets which are evaluated regularly by dedicated teams. The
assessment of the suitability of collateral for a specific transaction is part of the credit decision and must be
undertaken in a conservative way, including collateral haircuts that are applied. Deutsche Bank has collateral
type specific haircuts in place which are regularly reviewed and approved. In this regard, Deutsche Bank
strives to avoid “wrong-way” risk characteristics where the borrower’s counterparty risk is positively
correlated with the risk of deterioration in the collateral value. For guarantee collateral, the process for the
analysis of the guarantor’s creditworthiness is aligned to the credit assessment process for borrowers.
225
Risk Transfers
Risk transfers to third parties form a key part of Deutsche Bank’s overall risk management process and are
executed in various forms, including outright sales, single name and portfolio hedging, and securitizations.
Risk transfers are conducted by the respective business units and by Deutsche Bank’s Credit Portfolio
Strategies Group (“CPSG”), in accordance with specifically approved mandates.
CPSG manages the residual credit risk of loans and lending-related commitments of the international
investment-grade portfolio; the leveraged portfolio and the medium-sized German companies’ portfolio
within Deutsche Bank’s Corporate Divisions of CB&S and GTB.
Acting as a central pricing reference, CPSG provides the respective CB&S and GTB Division businesses
with an observed or derived capital market rate for loan applications; however, the decision of whether or
not the business can enter into the credit risk remains exclusively with Credit Risk Management.
CPSG is concentrating on two primary objectives within the credit risk framework to enhance risk
management discipline, improve returns and use capital more efficiently:
• to reduce single-name credit risk concentrations within the credit portfolio and
• to manage credit exposures by utilizing techniques including loan sales, securitization via collateralized
loan obligations, default insurance coverage and single-name and portfolio credit default swaps.
Netting and Collateral Arrangements for Derivatives
Netting is predominantly applicable to OTC derivative transactions as outlined below. Netting is also applied
to securities financing transactions as far as documentation, structure and nature of the risk mitigation allow
netting with the underlying credit risk.
In order to reduce the credit risk resulting from OTC derivative transactions, where central counterparty
(CCP) clearing is not available, Deutsche Bank regularly seeks the execution of standard master agreements
(such as master agreements for derivatives published by the International Swaps and Derivatives
Association, Inc. (“ISDA”) or the German Master Agreement for Financial Derivative Transactions) with its
clients. A master agreement allows the netting of rights and obligations arising under derivative transactions
that have been entered into under such a master agreement upon the counterparty’s default, resulting in a
single net claim owed by or to the counterparty (“close-out netting”). For parts of the derivatives business
(i.e., foreign exchange transactions) Deutsche Bank also enters into master agreements under which it sets
off amounts payable on the same day in the same currency and in respect to transactions covered by such
master agreements (“payment netting”), reducing its settlement risk. In Deutsche Bank’s risk
measurement and risk assessment processes it applies netting only to the extent it has satisfied itself of
the legal validity and enforceability of the master agreement in all relevant jurisdictions.
Also, Deutsche Bank enters into credit support annexes (“CSA”) to master agreements in order to further
reduce its derivatives-related credit risk. These annexes generally provide risk mitigation through periodic,
usually daily, margining of the covered exposure. The CSAs also provide for the right to terminate the
related derivative transactions upon the counterparty’s failure to honor a margin call. As with netting, when
Deutsche Bank believes the annex is enforceable, it reflects this in its exposure measurement.
Certain CSAs to master agreements provide for rating dependent triggers, where additional collateral must
be pledged if a party’s rating is downgraded. Deutsche Bank also enters into master agreements that
provide for an additional termination event upon a party’s rating downgrade. These downgrading provisions
in CSAs and master agreements usually apply to both parties but may seldom apply to Deutsche Bank only.
Deutsche Bank analyzes and monitors its potential contingent payment obligations resulting from a rating
downgrade in its stress testing approach for liquidity risk on an ongoing basis.
For an assessment of the quantitative impact of a downgrading of Deutsche Bank’s credit rating please
refer to tables covering Deutsche Bank’s stress testing results in the section “—Liquidity Risk—Stress
Testing and Scenario Analysis”.
Concentrations within Credit Risk Mitigation
Concentrations within credit risk mitigations taken may occur if a number of guarantors and credit derivative
providers with similar economic characteristics are engaged in comparable activities with changes in
economic or industry conditions affecting their ability to meet contractual obligations. Deutsche Bank uses
a range of quantitative tools and metrics to monitor its credit risk mitigating activities. These also include
monitoring of potential concentrations within collateral types supported by dedicated stress tests.
226
For more qualitative and quantitative details in relation to the application of credit risk mitigation and
potential concentration effects please refer to the section “—Credit Exposures—Maximum Exposure to
Credit Risk”.
Monitoring Credit Risk
Ongoing active monitoring and management of Deutsche Bank’s credit risk positions is an integral part of
Deutsche Bank’s credit risk management framework. The key monitoring focus is on quality trends and on
concentrations along the dimensions of counterparty, industry, country and product-specific risks to avoid
undue concentrations of credit risk. On a portfolio level, significant concentrations of credit risk could result
from having material exposures to a number of counterparties with similar economic characteristics, or who
are engaged in comparable activities, where these similarities may cause their ability to meet contractual
obligations to be affected in the same manner by changes in economic or industry conditions.
Deutsche Bank’s portfolio management framework supports a comprehensive assessment of
concentrations within its credit risk portfolio in order to keep concentrations within acceptable levels.
Counterparty Risk Management
Credit-related counterparties are principally allocated to credit officers within credit teams which are aligned
to types of counterparty (such as financial institution, corporate or private individuals) or economic area (i.e.,
emerging markets) and dedicated rating analyst teams. The individual credit officers have the relevant
expertise and experience to manage the credit risks associated with these counterparties and their
associated credit related transactions. For retail clients credit decision making and credit monitoring is highly
automated for efficiency reasons. Credit Risk Management has full oversight of the respective processes
and tools used in the retail credit process. It is the responsibility of each credit officer to undertake ongoing
credit monitoring for their allocated portfolio of counterparties. Deutsche Bank also has procedures in place
intended to identify at an early stage credit exposures for which there may be an increased risk of loss.
In instances where Deutsche Bank has identified counterparties where there is a concern that the credit
quality has deteriorated or appears likely to deteriorate to the point where they present a heightened risk of
loss in default, the respective exposure is generally placed on a “watch list”. Deutsche Bank aims to
identify counterparties that, on the basis of the application of its risk management tools, demonstrate the
likelihood of problems well in advance in order to effectively manage the credit exposure and maximize the
recovery. The objective of this early warning system is to address potential problems while adequate
options for action are still available. This early risk detection is a tenet of Deutsche Bank’s credit culture and
is intended to ensure that greater attention is paid to such exposures.
Industry Risk Management
To manage industry risk, Deutsche Bank has grouped its corporate and financial institutions counterparties
into various industry sub-portfolios. For each of these sub-portfolios an “Industry Batch report” is prepared
usually on an annual basis. This report highlights industry developments and risks to Deutsche Bank’s credit
portfolio, reviews concentration risks, analyzes the risk/reward profile of the portfolio and incorporates an
economic downside stress test. Finally, this analysis is used to define the credit strategies for the portfolio
in question.
The Industry Batch reports are presented to the Group Credit Policy Committee, a sub-committee of the
Risk Executive Committee and are submitted afterwards to the Management Board. In accordance with an
agreed schedule, a select number of Industry Batch reports are also submitted to the Risk Committee of
the Supervisory Board. In addition to these Industry Batch reports, the development of the industry subportfolios is regularly monitored during the year and is compared with the approved sub-portfolio strategies.
Regular overviews are prepared for the Group Credit Policy Committee to discuss recent developments and
to agree on actions where necessary.
Country Risk Management
Avoiding undue concentrations from a regional perspective is also an integral part of Deutsche Bank’s credit
risk management framework. In order to achieve this, country risk limits are applied to Emerging Markets
as well as selected Developed Markets countries (based on internal country risk ratings). Emerging Markets
are grouped into regions and for each region, as well as for the Higher Risk Developed Markets, a “Country
Batch report” is prepared, usually on an annual basis. These reports assess key macroeconomic
developments and outlook, review portfolio composition and concentration risks and analyze the risk/
reward profile of the portfolio. Based on this, limits and strategies are set for countries and, where relevant,
for the region as a whole. Country risk limits are approved by either Deutsche Bank’s Management Board
or by its Portfolio Risk Steering Committee, a sub-committee of the Risk Executive Committee and Capital
and Risk Committee, pursuant to delegated authority.
227
The Country Limit framework covers all major risk categories which are managed by the respective
divisions in Risk:
• Credit Risk: Limits are established for counterparty credit risk exposures in a given country to manage
the aggregate credit risk subject to country-specific economic and political events. These limits include
exposures to entities incorporated locally as well as subsidiaries of foreign multinational corporations.
Separate Transfer Risk Limits are established as sub-limits to these counterparty credit limits and apply
to Deutsche Bank’s cross-border exposures.
• Market Risk: Limits are established to manage trading position risk in emerging markets and are set
based on the P&L impact of potential stressed market events on those positions.
• Treasury Risk: Exposures of one Deutsche Bank entity to another (Funding, Capital or Margin) are
subject to limits given the transfer risk inherent in these cross-border positions.
• Gap Risk: Limits established to manage the risk of loss due to intra-country wrong-way risk exposure.
Deutsche Bank’s country risk ratings represent a key tool in its management of country risk. They are
established by the independent dbResearch function within Deutsche Bank and include:
• Sovereign rating: A measure of the probability of the sovereign defaulting on its foreign or local
currency obligations.
• Transfer risk rating: A measure of the probability of a “transfer risk event”, i.e., the risk that an
otherwise solvent debtor is unable to meet its obligations due to inability to obtain foreign currency or to
transfer assets as a result of direct sovereign intervention.
• Event risk rating: A measure of the probability of major disruptions in the market risk factors relating to
a country (interest rates, credit spreads, etc.). Event risks are measured as part of Deutsche Bank’s
event risk scenarios, as described in the section “—Trading Market Risk—Market Risk Measurement
and Assessment—Market Risk Monitoring” of this Prospectus.
All sovereign and transfer risk ratings are reviewed, at least annually, by the Portfolio Risk Steering
Committee, although more frequent reviews are undertaken when deemed necessary.
Postbank ratings are reviewed and adjusted if required by means of a rating tool on a monthly basis.
Country risk limits and sovereign risk limits for all relevant countries are approved by the Postbank
Management Board annually.
Product Specific Risk Management
Complementary to its counterparty, industry and country risk approach, Deutsche Bank focuses on product
specific risk concentrations and selectively set limits where required for risk management purposes.
Specific product limits are set if a concentration of transactions in a specific type might lead to significant
losses in certain cases. In this respect, correlated losses might result from disruptions of the functioning of
financial markets, significant moves in market parameters to which the respective product is sensitive,
macroeconomic default scenarios or other factors affecting certain credit products. Furthermore, Deutsche
Bank applies product-specific strategies setting its risk appetite for sufficiently homogeneous portfolios
where tailored client analysis is secondary, such as the retail portfolios of mortgages, business and
consumer finance products.
A key focus is put on underwriting caps. These caps limit the combined risk for transactions where
Deutsche Bank underwrites commitments with the intention to sell down or distribute part of the risk to
third parties. These commitments include the undertaking to fund bank loans and to provide bridge loans
for the issuance of public bonds. The risk is that Deutsche Bank may not be successful in the distribution of
the facilities, meaning that Deutsche Bank would have to hold more of the underlying risk for longer periods
of time than originally intended. These underwriting commitments are additionally exposed to market risk in
the form of widening credit spreads. Deutsche Bank dynamically hedges this credit spread risk to be within
the approved market risk limit framework.
Settlement Risk Management
Deutsche Bank’s trading activities may give rise to risk at the time of settlement of those trades.
Settlement risk arises when Deutsche Bank exchanges a value of cash or other assets with a counterparty.
It is the risk of loss due to the failure of a counterparty to honor its obligations (to deliver cash or other
assets) to Deutsche Bank, after Deutsche Bank releases payment or delivery of its obligations (of cash or
other assets) to the counterparty.
228
For many types of transactions, Deutsche Bank mitigates settlement risk by closing the transaction through
a clearing agent, which effectively acts as a stakeholder for both parties, only settling the trade once both
parties have fulfilled their sides of the contractual obligation.
Where no such settlement system exists, the simultaneous commencement of the payment and the
delivery parts of the transaction is common practice between trading partners (free settlement). In these
cases, Deutsche Bank may seek to mitigate its settlement risk through the execution of bilateral payment
netting agreements. Deutsche Bank also participates in industry initiatives to reduce settlement risks.
Acceptance of settlement risk on free settlement trades requires approval from Deutsche Bank’s credit risk
personnel, either in the form of pre-approved settlement risk limits, or through transaction-specific
approvals. Deutsche Bank does not aggregate settlement risk limits with other credit exposures for credit
approval purposes, but Deutsche Bank takes the aggregate exposure into account when it considers
whether a given settlement risk would be acceptable.
Credit Risk Tools – Economic Capital for Credit Risk
Deutsche Bank calculates economic capital for the default risk, country risk and settlement risk as elements
of credit risk. In line with Deutsche Bank’s economic capital framework, economic capital for credit risk is
set at a level to absorb with a probability of 99.98 % very severe aggregate unexpected losses within one
year.
Deutsche Bank’s economic capital for credit risk is derived from the loss distribution of a portfolio via Monte
Carlo Simulation of correlated rating migrations. The loss distribution is modeled in two steps. First,
individual credit exposures are specified based on parameters for the probability of default, exposure at
default and loss given default. In a second step, the probability of joint defaults is modeled through the
introduction of economic factors, which correspond to geographic regions and industries. The simulation of
portfolio losses is then performed by an internally developed model, which takes rating migration and
maturity effects into account. Effects due to wrong-way derivatives risk (i.e., the credit exposure of a
derivative in the default case is higher than in nondefault scenarios) are modeled by applying Deutsche
Bank’s own alpha factor when deriving the exposure at default for derivatives and securities financing
transactions under the Basel 2.5 Internal Models Method. The alpha factor is identical with the one used for
the risk-weighted assets calculation, yet subject to a lower floor of 1.0. For December 31, 2013 the alpha
factor was calibrated to 1.22. Deutsche Bank allocates expected losses and economic capital derived from
loss distributions down to transaction level to enable management on transaction, customer and business
level.
Credit Exposures
Counterparty credit exposure arises from Deutsche Bank’s traditional nontrading lending activities which
include elements such as loans and contingent liabilities, as well as from Deutsche Bank’s direct trading
activity with clients in certain instruments including OTC derivatives like FX forwards and Forward Rate
Agreements. A default risk also arises from Deutsche Bank’s positions in equity products and traded credit
products such as bonds.
Deutsche Bank defines its credit exposure by taking into account all transactions where losses might occur
due to the fact that counterparties may not fulfill their contractual payment obligations.
Maximum Exposure to Credit Risk
The maximum exposure to credit risk table shows the direct exposure before consideration of associated
collateral held and other credit enhancements (netting and hedges) that do not qualify for offset in
Deutsche Bank’s financial statements for the periods specified. The netting credit enhancement
component includes the effects of legally enforceable netting agreements as well as the offset of negative
mark-to-markets from derivatives against pledged cash collateral. The collateral credit enhancement
component mainly includes real estate, collateral in the form of cash as well as securities related collateral.
In relation to collateral Deutsche Bank applies internally determined haircuts and additionally caps all
collateral values at the level of the respective collateralized exposure.
229
Maximum Exposure to Credit Risk
December 31, 2013
Credit Enhancements
Maximum
Guarantees
exposure
and Credit
(audited)
Total credit
to credit risk(2) Netting Collateral derivatives(3) enhancements
in € m.(1)
Due from banks . . . . . . . . . . . . . . . . . .
17,155
0
0
13
13
Interest-earning deposits with
banks . . . . . . . . . . . . . . . . . . . . . . . . .
77,984
0
2
31
34
Central bank funds sold and
securities purchased under resale
agreements . . . . . . . . . . . . . . . . . . .
27,363
0
25,100
0
25,100
Securities borrowed . . . . . . . . . . . . . .
20,870
0
20,055
0
20,055
Financial assets at fair value through
profit or loss(4) . . . . . . . . . . . . . . . . . .
824,458 434,328
206,002
3,851
644,181
46,413
0
760
110
870
Financial assets available for sale(4) . .
382,171
0
198,668
29,971
228,640
Loans(5) . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets subject to credit risk . . .
59,030 43,574
1,150
385
45,109
Financial guarantees and other credit
related contingent liabilities(6) . . . . .
65,630
0
7,209
11,513
18,722
Irrevocable lending commitments and
other credit related
commitments(6) . . . . . . . . . . . . . . . .
126,660
0
4,538
9,182
13,720
Maximum exposure to credit
risk . . . . . . . . . . . . . . . . . . . . . . . . . .
1,647,733 477,902
463,484
55,056
996,442
1
2
3
4
5
6
All amounts at carrying value unless otherwise indicated.
Does not include credit derivative notional sold (€ 1,035,946 million) and credit derivative notional bought protection.
Interest-earning deposits with banks mainly relate to Liquidity Reserves.
Credit derivatives are reflected with the notional of the underlying.
Excludes equities, other equity interests and commodities.
Gross loans less deferred expense/unearned income before deductions of allowance for loan losses.
Figures are reflected at notional amounts.
December 31, 2012
Credit Enhancements
Maximum
Guarantees
exposure
and Credit
(audited)
Total credit
to credit risk(2) Netting Collateral derivatives(3) enhancements
in € m.(1)
Due from banks . . . . . . . . . . . . . . . . . .
27,877
0
0
1
1
banks . . . . . . . . . . . . . . . . . . . . . . . . .
120,636
0
2
35
37
securities purchased under resale
agreements . . . . . . . . . . . . . . . . . . .
36,570
0
36,349
0
36,349
Securities borrowed . . . . . . . . . . . . . .
24,013
0
23,308
0
23,308
Financial assets at fair value through
profit or loss(4) . . . . . . . . . . . . . . . . . .
1,125,019 657,826
211,397
3,968
873,191
47,110
0
1,287
703
1,990
Financial assets available for sale(4) . .
402,069
0
208,681
37,841
246,522
Loans(5) . . . . . . . . . . . . . . . . . . . . . . . . .
Other assets subject to credit risk . . .
86,643 69,546
6,653
12
76,211
Financial guarantees and other credit
related contingent liabilities(6) . . . . .
68,358
0
7,810
8,444
16,254
Irrevocable lending commitments and
commitments(6) . . . . . . . . . . . . . . . .
129,657
0
4,771
10,558
15,329
Maximum exposure to credit
risk . . . . . . . . . . . . . . . . . . . . . . . . . .
2,067,952 727,372
500,258
61,562
1,289,192
1
2
3
4
5
6
Does not include credit derivative notional sold (€ 1,274,960 million) and credit derivative notional bought protection.
Interest-earning deposits with banks mainly relate to liquidity reserves.
Credit derivatives are reflected with the notional of the underlying.
Figures are reflected at notional amounts.
230
Included in the category of financial assets at fair value through profit or loss as of December 31, 2013,
were € 117 billion of securities purchased under resale agreements (€ 125 billion as of December 31, 2012)
and € 32 billion of securities borrowed (€ 28 billion as of December 31, 2012), both with limited net credit
risk as a result of very high levels of collateral, as well as traded bonds of € 126 billion (€ 159 billion as of
December 31, 2012) that are over 86 % investment-grade (over 85 % as of December 31, 2012). The above
mentioned financial assets available for sale category primarily reflected debt securities of which more than
97 % were investment-grade (more than 95 % as of December 31, 2012).
The significant decrease in maximum exposure to credit risk for December 31, 2013 was predominantly
driven by positive market values from derivatives (in financial assets at fair value through profit or loss)
which decreased by € 264 billion to € 505 billion as of December 31, 2013 and interest-earning deposits
with banks, which decreased by € 43 billion and accounted for € 78 billion exposure as of December 31,
2013.
Credit Enhancements are split into three categories: netting, collateral, and guarantees and credit
derivatives. A prudent approach is taken with respect to haircuts, parameter setting for regular margin calls
as well as expert judgments for collateral valuation to prevent market developments from leading to a buildup of uncollateralized exposures. All categories are monitored and reviewed regularly. Overall credit
enhancements received are diversified and of adequate quality being largely cash, highly rated government
bonds and third-party guarantees mostly from well rated banks and insurance companies. These financial
institutions are mainly domiciled in Western European countries and the United States. Furthermore
Deutsche Bank has collateral pools of highly liquid assets and mortgages (principally consisting of
residential properties mainly in Germany) for the homogeneous retail portfolio.
Credit Quality of Financial Instruments neither Past Due nor Impaired
Deutsche Bank derives its credit quality from internal ratings and groups its exposures into classes as
shown below. Please see the sections “—Credit Risk Ratings” and “—Rating Governance” for more
details about Deutsche Bank’s internal ratings.
Credit Quality of Financial Instruments neither Past Due nor Impaired
December 31, 2013
(audited)
in € m.(1)
Due from banks . . . . . . . . . . .
banks . . . . . . . . . . . . . . . . . .
securities purchased under
resale agreements . . . . . . .
Securities borrowed . . . . . . . .
Financial assets at fair value
through profit or loss(2) . . . .
Financial assets available
for sale(2) . . . . . . . . . . . . . . .
Loans(3) . . . . . . . . . . . . . . . . . .
Thereof: IAS 39 reclassified
loans . . . . . . . . . . . . . . . . .
Other assets subject to credit
risk . . . . . . . . . . . . . . . . . . . .
Financial guarantees and
contingent liabilities(4) . . . . .
Irrevocable lending
commitments and other
credit related
commitments(4) . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . .
1
2
3
4
iAAA-iAA
13,804
iA
1,971
iBBB
998
iBB
311
iB
17
iCCC and
below
55
Total
17,155
71,053
5,078
1,145
391
282
35
77,984
3,774
12,783
19,949
6,381
1,904
1,057
1,516
382
201
267
19
0
27,363
20,870
282,000
368,969
69,497
84,517
14,009
5,466
824,458
35,708
34,708
5,366
53,624
1,662
99,941
1,171
127,613
586
40,869
307
9,884
44,799
366,639
999
2,894
2,088
962
817
286
8,046
7,923
37,446
2,821
9,416
1,140
284
59,030
8,318
19,285
20,234
11,604
4,382
1,807
65,630
19,791
489,860
31,009
549,078
37,326
236,584
25,363
262,284
11,927
73,680
1,245
19,102
126,660
1,630,588
Figures are reflected at notational amounts.
231
December 31, 2012
(audited)
iCCC and
in € m.(1)
below
iAAA-iAA
iA
iBBB
iBB
iB
Total
Due from banks . . . . . . . . . . . . . .
24,950
1,528
988
193
171
47
27,877
banks . . . . . . . . . . . . . . . . . . . . .
110,051
7,238
1,369
746
79
65
119,548
securities purchased under
resale agreements . . . . . . . . . .
1,605 32,560
1,332
877
140
56
36,570
Securities borrowed . . . . . . . . . . .
14,708
7,342
1,216
439
306
0
24,011
Financial assets at fair value
349,773 553,851 99,414 91,766 23,044
7,065 1,124,913
through profit or loss(2) . . . . . . .
Financial assets available for
30,077
8,303
4,076
1,913
515
1,964
46,848
sale(2) . . . . . . . . . . . . . . . . . . . . .
52,248 52,133 99,418 129,814 39,193
12,955
385,761
Loans(3) . . . . . . . . . . . . . . . . . . . . .
Thereof: IAS 39 reclassified
loans . . . . . . . . . . . . . . . . . . .
3,285
4,444
2,333
4,292
861
726
15,941
Other assets subject to credit
risk . . . . . . . . . . . . . . . . . . . . . . .
6,472 40,131
2,688 35,145 1,300
110
85,846
Financial guarantees and other
credit related contingent
9,064 19,192 21,304 11,460 4,886
2,455
68,361
liabilities(4) . . . . . . . . . . . . . . . . .
Irrevocable lending
commitments and other credit
20,233 37,456 37,754 22,631 10,068
1,515
129,657
related commitments(4) . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . .
619,181 759,734 269,559 294,984 79,702
26,232 2,049,392
1
2
3
4
Figures are reflected at notational amounts.
Financial assets at fair value through profit and loss saw a material fall in gross exposures (i.e., before credit
enhancements) principally driven by a reduction of positive market values of derivatives. On a net basis
after credit enhancements portfolio quality has remained broadly stable and heavily biased towards
investment-grade-rated counterparties.
Main Credit Exposure Categories
The tables in this section show details about several of Deutsche Bank’s main credit exposure categories,
namely loans, irrevocable lending commitments, contingent liabilities, over-the-counter (“OTC”) derivatives,
traded loans, traded bonds, debt securities available for sale and repo and repo-style transactions:
• “Loans” are net loans as reported on Deutsche Bank’s balance sheet at amortized cost but before
deduction of its allowance for loan losses.
• “Irrevocable lending commitments” consist of the undrawn portion of irrevocable lending-related
commitments.
• “Contingent liabilities” consist of financial and performance guarantees, standby letters of credit and
others (mainly indemnity agreements).
• “OTC derivatives” are Deutsche Bank’s credit exposures from over-the-counter derivative transactions
that it has entered into, after netting and cash collateral received. On Deutsche Bank’s balance sheet,
these are included in financial assets at fair value through profit or loss or, for derivatives qualifying for
hedge accounting, in other assets, in either case, before netting and cash collateral received.
• “Traded loans” are loans that are bought and held for the purpose of selling them in the near term, or
the material risks of which have all been hedged or sold. From a regulatory perspective this category
principally covers trading book positions.
• “Traded bonds” include bonds, deposits, notes or commercial paper that are bought and held for the
purpose of selling them in the near term. From a regulatory perspective this category principally covers
trading book positions.
• “Debt securities available for sale” include debentures, bonds, deposits, notes or commercial paper,
which are issued for a fixed term and redeemable by the issuer, which Deutsche Bank has classified as
available for sale.
232
• “Repo and repo-style transactions” consist of reverse repurchase transactions, as well as securities or
commodities borrowing transactions after application of netting and collateral received.
Although considered in the monitoring of maximum credit exposures, the following are not included in the
details of Deutsche Bank’s main credit exposure: brokerage and securities related receivables, interestearning deposits with banks, cash and due from banks, assets held for sale and accrued interest
receivables. Excluded as well are traditional securitization positions and equity investments, which are dealt
with specifically in the sections “—Securitization” and “—Nontrading Market Risk—Assessment of Market
Risk in Nontrading Portfolios—Investment Risk” and “—Nontrading Market Risk—Equity Investments
Held”, respectively.
Main Credit Exposure Categories by Business Divisions
(unaudited, unless
stated otherwise)
in € m.
Loans(1)
Corporate Banking & Securities . . . . .
Global Transaction Banking . . . . . . . . .
Deutsche Asset & Wealth
Management . . . . . . . . . . . . . . . . . .
Private & Business Clients . . . . . . . . .
Non-Core Operations Unit . . . . . . . . . .
Consolidation & Adjustments . . . . . . .
December 31, 2013
Irrevocable
Debt
Repo and
lending
ConOTC
securities repo-style
commit- tingent
deri- Traded Traded available
transments(2) liabilities vatives(3) Loans Bonds for sale actions(4)
40,515
72,868
92,234
15,931
6,716
52,049
32,214
213,252
23,215
106
3,070
13,685
1,450
289
2,795
1,595
2,416
58
Total(5) . . . . . . . . . . . . . . . . . . . . . . . . . 382,171 126,660
65,630
40,709 14,921 109,871
500
958
65
Total
19,947
171
176,720
5,630
501,633
148,171
9,023
1
7,196
5
2,946
16,240
4,841
97
15
15,090
15
12
50,869
260,362
43,236
575
44,716 17,787 126,160
44,242
791
498
2,211
7
16
0
1,891
1
197,482 1,004,848
1 Includes impaired loans amounting to € 10.1 billion as of December 31, 2013.
2 Includes irrevocable lending commitments related to consumer credit exposure of € 9.8 billion as of December 31, 2013.
3 Includes the effect of netting agreements and cash collateral received where applicable. Excludes derivatives qualifying for
hedge accounting.
4 Before reflection of collateral and limited to securities purchased under resale agreements and securities borrowed.
5 Audited.
(unaudited, unless
stated otherwise)
in € m.
Corporate Banking & Securities . . . .
Global Transaction Banking . . . . . . .
Deutsche Asset & Wealth
Management . . . . . . . . . . . . . . . . .
Private & Business Clients . . . . . . . .
Non-Core Operations Unit . . . . . . . .
Consolidation & Adjustments . . . . . .
Total(5) . . . . . . . . . . . . . . . . . . . . . . . .
Loans(1)
43,103(5)
December 31, 2012
Irrevocable
Debt
Repo and
lending
ConOTC
commit- tingent
69,963(5)
95,703
13,552
8,031
52,297
29,522(5)
209,029(5)
50,162(5)
290(5)
3,401
14,196
1,480
1,325
2,824
1,764
3,353
89
402,069 129,657
68,358
53,427 14,052 134,026
721
827
52
Total
10,457
193
189,681
2,965
548,480
140,570
21 12,803
0
80
2,736 12,324
2
64
3,044
17,931
12,485
45
142
20,936
150
0
52,525
265,086
89,063
1,820
62,444 17,638 159,349
44,155
768
1,150
6,373
5
213,874 1,097,544
hedge accounting.
5 Audited.
Deutsche Bank’s main credit exposure decreased by € 92.7 billion.
• From a divisional perspective, a reduction of € 46.8 billion has been achieved by CB&S and of € 45.8
billion by NCOU mainly driven by market values from derivatives, non-derivative trading assets and
loans.
• From a product perspective, exposure reductions have been observed across different categories
except for Traded Loans and Debt Securities available for sale which slightly increased since last year.
233
Main Credit Exposure Categories by Industry Sectors
(unaudited, unless stated
otherwise)
in € m.
Loans(1)
25,100(6)
Banks and insurance . . . . . . . .
Fund management
activities . . . . . . . . . . . . . . . . 10,029(6)
Manufacturing . . . . . . . . . . . . . 21,406(6)
Wholesale and retail trade . . . . 13,965(6)
Households . . . . . . . . . . . . . . . . 193,515(6)
Commercial real estate
activities . . . . . . . . . . . . . . . . 34,259(6)
Public sector . . . . . . . . . . . . . . . 16,228(6)
Other . . . . . . . . . . . . . . . . . . . . . 67,668(5)(6)
December 31, 2013
Irrevocable
Debt
Repo and
lending
ConOTC
commit- tingent
transments(2) liabilities vatives(3) Loans
Bonds
for sale actions(4)
Total
21,070
15,289
22,243
5,389
34,427
14,212
195,273
333,002
4,756
28,844
10,208
10,839
1,255
18,767
5,610
2,645
3,326
1,077
904
665
421
1,301
936
611
4,771
2,999
811
1
235
314
128
0
20
0
0
59
24,814
74,708
32,562
208,336
2,525
1,928
46,491
831
135
21,099
661
4,299
11,541
2,047
592
6,488
1,140
64,286
17,726
88
26,101
3,166
136
681
1,313
41,686
114,250
175,490
Total . . . . . . . . . . . . . . . . . . . . . 382,171(6) 126,660(6) 65,630(6) 44,716(6) 17,787(6) 126,160(6)
44,242(6) 197,482(6) 1,004,848(6)
hedge accounting.
5 Loan exposures for Other include lease financing.
6 Audited.
December 31, 2012
Irrevocable
Debt
Repo and
(unaudited, unless stated
lending
ConOTC
otherwise)
commit- tingent
transin € m.
Loans(1) ments(2) liabilities vatives(3) Loans
Bonds
for sale actions(4)
Total
Banks and insurance . . . . . . . . 27,849(6)
Fund management
activities . . . . . . . . . . . . . . . . 16,777(6)
Manufacturing . . . . . . . . . . . . . 23,203(6)
Wholesale and retail trade . . . . 17,026(6)
Households . . . . . . . . . . . . . . . . 180,974(6)
Commercial real estate
activities . . . . . . . . . . . . . . . . 45,306(6)
Public sector . . . . . . . . . . . . . . . 15,378(6)
Other . . . . . . . . . . . . . . . . . . . . . 75,556(5)(6)
22,083
16,020
32,673
2,643
39,508
15,280
207,539
363,595
6,248
30,347
8,799
12,273
2,063
18,899
6,080
2,593
4,583
1,626
757
730
520
2,327
531
1,342
7,568
3,554
1,124
7
1,092
482
149
0
18
0
0
45
38,869
80,438
34,466
197,964
2,677
1,370
45,860
690
107
21,906
1,567
6,319
14,189
2,288
309
7,678
1,367
88,215
18,006
68
25,095
1,989
0
1,028
5,244
53,963
137,821
190,428
Total . . . . . . . . . . . . . . . . . . . . . 402,069(6) 129,657(6) 68,358(6) 62,444(6) 17,638(6) 159,349(6)
44,155(6) 213,874(6) 1,097,544(6)
hedge accounting.
5 Loan exposures for Other include lease financing.
6 Audited.
From an industry perspective, Deutsche Bank’s credit exposure as of December 31, 2013 was lower
compared with December 31, 2012 in banks and insurance (€ 30.6 billion), public sector (€ 23.6 billion),
funds management activities (€ 14.1 billion), commercial real estate activities (€ 12.3 billion) and
manufacturing (€ 5.7 billion), partly offset by an increase in households (€ 10.4 billion) primarily in loans,
reflecting the overall growth of Deutsche Bank’s retail book.
Loan exposures to the industry sectors banks and insurance, manufacturing and public sector comprise
predominantly investment-grade variable rate loans which are held to maturity. The portfolio is subject to the
same credit underwriting requirements stipulated in Deutsche Bank’s “Principles for Managing Credit Risk”,
including various controls according to single name, country, industry and product-specific concentration.
Material transactions, such as loans underwritten with the intention to syndicate, are subject to review by
senior credit risk management professionals and (depending upon size) an underwriting credit committee
and/or the Management Board. High emphasis is placed on structuring such transactions so that de-risking
is achieved in a timely and cost effective manner. Exposures within these categories are mostly to good
quality borrowers and also subject to further risk mitigation as outlined in the description of Deutsche
Bank’s Credit Portfolio Strategies Group’s activities.
234
Deutsche Bank’s household loans exposure amounting to € 194 billion as of December 31, 2013 (€ 181 billion
as of December 2012) is principally associated with Deutsche Bank’s PBC portfolio. € 148 billion (76 %) of the
portfolio comprises mortgages, of which € 116 billion are held in Germany. The remaining exposures
(€ 46 billion, 24 %) are predominantly consumer finance business related. Given the largely homogeneous
nature of this portfolio, counterparty credit worthiness and ratings are predominately derived by utilizing an
automated decision engine.
Mortgage business is principally the financing of owner occupied properties sold by various business
channels in Europe, primarily in Germany but also in Spain, Italy and Poland, with exposure normally not
exceeding real estate value. Consumer finance is divided into personal installment loans, credit lines and
credit cards. Various lending requirements are stipulated, including (but not limited to) maximum loan
amounts and maximum tenors and are adapted to regional conditions and/or circumstances of the borrower
(i.e., for consumer loans a maximum loan amount taking into account household net income). Interest rates
are mostly fixed over a certain period of time, especially in Germany. Second lien loans are not actively
pursued.
The level of credit risk of the mortgage loan portfolio is determined by assessing the quality of the client
and the underlying collateral. The loan amounts are generally larger than consumer finance loans and they
are extended for longer time horizons. Consumer finance loan risk depends on client quality. Given that
they are uncollateralized, compared with mortgages they are also smaller in value and are extended for
shorter time. Based on Deutsche Bank’s underwriting criteria and processes, diversified portfolio
(customers/properties) and low loan-to-value (“LTV”) ratios, the mortgage portfolio is categorized as lower
risk and consumer finance medium risk.
Deutsche Bank’s commercial real estate loans are generally secured by first mortgages on the underlying
real estate property, and follow the credit underwriting requirements stipulated in the “Principles for
Managing Credit Risk” noted above (i.e., rating followed by credit approval based on assigned credit
authority) and are subject to additional underwriting and policy guidelines such as LTV ratios of generally
less than 75 %. Additionally, given the significance of the underlying collateral independent external
appraisals are commissioned for all secured loans by Deutsche Bank’s valuation team (part of the
independent Credit Risk Management function). Deutsche Bank’s valuation team is responsible for
reviewing and challenging the reported real estate values.
Excluding the exposures transferred into the NCOU, the Commercial Real Estate Group only in exceptional
cases retains mezzanine or other junior tranches of debt, though the Postbank portfolio holds an
insignificant sub-portfolio of junior tranches. Loans originated for securitization are carefully monitored under
a pipeline limit. Securitized loan positions are entirely sold (except where regulation requires retention of
economic risk), while Deutsche Bank frequently retains a portion of syndicated bank loans. This hold
portfolio, which is held at amortized cost, is also subject to the aforementioned principles and policy
guidelines. Deutsche Bank also participates in conservatively underwritten unsecured lines of credit to wellcapitalized real estate investment trusts and other public companies (generally investment-grade). Deutsche
Bank provides both fixed rate (generally securitized product) and floating rate loans, with interest rate
exposure subject to hedging arrangements. In addition, sub-performing and non-performing loans and pools
of loans are acquired from other financial institutions at generally substantial discounts to both the notional
amounts and current collateral values. The underwriting process for these is stringent and the exposure is
managed under a separate portfolio limit. Commercial real estate property valuations and rental incomes
can be significantly impacted by macro-economic conditions and underlying properties to idiosyncratic
events. Accordingly, the portfolio is categorized as higher risk and hence subject to the aforementioned
tight restrictions on concentration.
The category other loans, with exposure of € 68 billion as of December 31, 2013 (€ 76 billion as of
December 31, 2012), relates to numerous smaller industry sectors with no individual sector greater than
5 % of total loans.
Deutsche Bank’s credit exposure to its ten largest counterparties accounted for 10 % of its aggregated
total credit exposure in these categories as of December 31, 2013 compared with 11 % as of
December 31, 2012. Deutsche Bank’s top ten counterparty exposures were with well-rated counterparties
or otherwise related to structured trades which show high levels of risk mitigation.
235
The following two tables present specific disclosures in relation to Pillar 3.
Residual contract maturity profile of the main credit exposure categories
December 31, 2013
(unaudited)
in € m.
Loans(1)
Debt
Irrevocable
securities Repo and
lending
Contingent
OTC
Traded Traded available repo-style
commitments(2) liabilities derivatives(3) Loans Bonds for sale transactions(4)
Total
< 1 year . . . . . . . . . 124,456
1 year – 5 years . . 92,255
> 5 years . . . . . . . . 165,460
31,482
79,312
15,866
36,141
21,398
8,091
10,746
13,442
20,528
3,752 27,530
6,792 38,719
7,243 59,911
4,328
24,783
15,131
194,046
3,016
419
432,481
279,717
292,650
Total credit risk
exposure . . . . . 382,171
126,660
65,630
44,716 17,787 126,160
44,242
197,482 1,004,848
hedge accounting.
December 31, 2012
(unaudited)
in € m.
Loans(1)
Debt
Irrevocable
securities Repo and
lending
Contingent
OTC
Traded Traded available repo-style
commitments(2) liabilities derivatives(3) Loans Bonds for sale transactions(4)
Total
< 1 year . . . . . . . . . 126,008
1 year – 5 years . . 96,802
> 5 years . . . . . . . . 179,259
30,601
82,179
16,877
35,776
23,995
8,587
12,561
17,821
32,062
3,416 37,744
8,272 46,487
5,950 75,118
5,702
21,110
17,343
211,933
1,818
123
463,741
298,484
335,319
Total credit risk
exposure . . . . . 402,069
129,657
68,358
62,444 17,638 159,349
44,155
213,874 1,097,544
hedge accounting.
Average credit risk exposure held over the four quarters
(unaudited)
in € m.
Loans(1)
2013
Irrevocable
Debt
Repo and
lending
ConOTC
commit- tingent
Total
Total average credit risk exposure . . . 390,469 130,981
68,198
52,999 16,930 144,386
46,509
212,145 1,062,618
Total credit risk exposure at
year-end . . . . . . . . . . . . . . . . . . . . . . 382,171 126,660
65,630
44,716 17,787 126,160
44,242
197,482 1,004,848
hedge accounting.
(unaudited)
in € m.
Loans(1)
2012
Irrevocable
Debt
Repo and
lending
OTC
commit- Contingent
Total
Total average credit risk
exposure . . . . . . . . . . . . . . . . . . . . 409,131 131,289
68,683
68,334 16,638 169,110
42,527
229,623 1,135,335
Total credit risk exposure at yearend . . . . . . . . . . . . . . . . . . . . . . . . 402,069 129,657
68,358
62,444 17,638 159,349
44,155
213,874 1,097,544
236
1
2
3
4
Includes impaired loans amounting to € 10.3 billion as of December 31, 2012.
Includes irrevocable lending commitments related to consumer credit exposure of € 10.4 billion as of December 31, 2012.
Includes the effect of netting agreements and cash collateral received where applicable. Excludes derivatives qualifying for
hedge accounting.
Before reflection of collateral and limited to securities purchased under resale agreements and securities borrowed.
Main credit exposure categories by geographical region
(audited)
in € m.
Loans(1)
Germany . . . . . . . . . . . . . . 200,106
Western Europe
(excluding Germany) . . . . 86,846
thereof:
France . . . . . . . . . . . . . .
2,675
Luxembourg . . . . . . . . .
5,566
Netherlands . . . . . . . . . 12,163
United Kingdom . . . . . .
8,719
Eastern Europe . . . . . . . .
9,773
thereof:
Poland . . . . . . . . . . . . . .
6,862
Russia . . . . . . . . . . . . . .
1,752
North America . . . . . . . . . 42,748
thereof:
Canada . . . . . . . . . . . . .
572
Cayman Islands . . . . . .
2,294
U.S. . . . . . . . . . . . . . . . . 35,019
Central and South
America . . . . . . . . . . . . .
4,539
thereof:
Brazil . . . . . . . . . . . . . . .
1,413
Mexico . . . . . . . . . . . . .
271
Asia/Pacific . . . . . . . . . . . . 36,151
thereof:
China . . . . . . . . . . . . . . .
8,894
Japan . . . . . . . . . . . . . . .
848
South Korea . . . . . . . . .
2,150
Africa . . . . . . . . . . . . . . . . .
1,879
Other . . . . . . . . . . . . . . . . .
130
Total . . . . . . . . . . . . . . . . . 382,171
1
2
3
4
December 31, 2013
Irrevocable
lending
ConOTC
commit- tingent
deriTraded Traded
ments(2) liabilities vatives(3) Loans Bonds
Debt
securities
available
for sale
Repo and
repo-style
transactions(4)
Total
24,042
14,572
2,413
1,451
12,608
10,961
16,444
282,598
36,302
19,991
17,056
5,179
31,296
26,309
58,843
281,823
7,807
1,775
6,058
8,113
1,573
2,014
622
3,179
1,817
2,173
1,273
1,735
3,099
3,834
844
672
1,362
863
942
2,177
6,585
3,892
4,111
6,421
2,532
3,691
3,976
6,382
5,018
390
11,811
572
429
31,403
529
36,528
19,502
36,285
66,266
19,991
761
463
58,532
215
753
17,212
59
74
14,404
38
1,822
6,111
867
600
52,298
259
0
4,041
0
357
92,099
9,061
5,822
287,444
1,760
1,725
54,432
1,571
486
14,680
648
1,118
12,308
499
313
5,113
2,132
1,909
47,710
165
154
3,716
798
25,633
64,532
8,146
33,632
237,511
745
1,338
701
364
3,016
129
1,310
12,143
249
122
4,752
712
34
9,392
120
218
9,081
162
163
2,341
1,638
279
23,740
17
74
2,286
349
321
28,043
4,660
1,483
115,787
432
408
7
668
44
788
396
930
932
19
623
3,920
515
191
25
69
405
22
111
52
1,183
5,112
977
552
118
0
884
65
0
126
2,123
16,065
337
214
0
14,113
28,038
5,004
4,546
515
126,660
65,630
44,716
17,787 126,160
44,242
197,482 1,004,848
hedge accounting.
237
(audited)
in € m.
Loans(1)
December 31, 2012
Irrevocable
lending
ConOTC
commit- tingent
deriTraded Traded
ments(2) liabilities vatives(3) Loans Bonds
Debt
Repo and
available
transfor sale
actions(4)
Total
Germany . . . . . . . . . . . . . . . 199,190
Western Europe
(excluding Germany) . . . . . . 104,528
thereof:
France . . . . . . . . . . . . . . .
3,072
Luxembourg . . . . . . . . . . 10,759
Netherlands . . . . . . . . . . . 15,364
United Kingdom . . . . . . . 13,398
Eastern Europe . . . . . . . . . . 10,178
thereof:
Poland . . . . . . . . . . . . . . .
6,335
Russia . . . . . . . . . . . . . . .
2,398
North America . . . . . . . . . . . 52,472
thereof:
Canada . . . . . . . . . . . . . . .
927
Cayman Islands . . . . . . . .
2,108
U.S. . . . . . . . . . . . . . . . . . 47,451
Central and South
America . . . . . . . . . . . . . .
4,743
thereof:
Brazil . . . . . . . . . . . . . . . . .
2,034
Mexico . . . . . . . . . . . . . . .
329
Asia/Pacific . . . . . . . . . . . . . 29,220
thereof:
China . . . . . . . . . . . . . . . .
4,723
Japan . . . . . . . . . . . . . . . .
1,198
South Korea . . . . . . . . . . .
1,739
Africa . . . . . . . . . . . . . . . . . .
1,634
Other . . . . . . . . . . . . . . . . . .
104
24,301
14,863
3,159
300
19,963
12,794
24,528
299,098
33,922
19,279
29,478
5,589
33,556
25,802
50,362
302,516
6,611
1,599
4,756
7,868
1,479
1,878
779
3,309
1,998
1,926
1,826
1,664
2,536
12,764
1,075
602
433
888
2,137
2,249
3,862
1,848
3,116
4,716
4,242
4,095
2,176
5,962
2,842
303
5,858
444
1,951
30,557
380
27,804
19,701
37,883
76,281
21,832
744
374
63,302
221
818
19,883
88
68
18,423
38
1,971
7,177
1,310
1,944
64,081
120
1
2,500
0
340
100,813
8,857
7,912
328,651
2,399
1,856
57,748
2,820
478
15,477
1,109
1,583
15,387
1,152
286
5,692
4,995
2,680
55,857
146
203
2,114
2,926
25,684
70,288
16,474
34,878
270,015
756
1,342
1,053
503
4,808
57
2,695
15,957
290
96
5,253
935
25
10,060
161
283
9,165
157
234
1,711
3,321
274
31,791
27
5
2,699
2,187
93
34,634
9,113
1,338
124,533
307
1,232
4
587
57
1,131
176
501
1,005
0
468
5,022
428
17
74
36
4
2
86
23
1,799
7,461
2,479
766
142
0
1,095
0
0
0
1,619
18,493
1,683
462
0
10,083
34,683
6,836
4,557
400
Total . . . . . . . . . . . . . . . . . . 402,069
129,657
68,358
62,444
17,638 159,349
44,155
1
2
3
4
213,874 1,097,544
hedge accounting.
Deutsche Bank’s largest concentration of credit risk within loans from a regional perspective is in its home
market Germany, with a significant share in households, which includes the majority of its mortgage
lending business. Within the OTC derivatives business Deutsche Bank’s largest concentrations were in
Western Europe (excluding Germany) and North America, with a significant share in highly rated banks and
insurance companies for which it considers the credit risk to be limited.
Deutsche Bank’s largest concentration of credit risk within tradable assets from a regional perspective were
in North America and Western Europe (excluding Germany), with a significant share in public sector and
banks and insurance companies. Within the repo and repo-style transactions Deutsche Bank’s largest
concentrations were in North America and Western Europe (excluding Germany), with a significant share in
highly rated banks and insurance companies.
As of December 31, 2013 Deutsche Bank’s loan book decreased to € 382 billion (versus € 402 billion as of
December 31, 2012) mainly in Western Europe (excluding Germany) and North America with banks and
insurance, fund management activities and commercial real estate experiencing declines. The decrease in
OTC derivatives (€ 17.7 billion) was mainly in North America and Western Europe (excluding Germany). The
decrease in repo and repo-style transactions (€ 16.4 billion) was primarily in positions with banks and
insurance companies within North America and Germany, partly offset with increases in Western Europe
(excluding Germany).
Credit Exposure to Certain Eurozone Countries
Certain eurozone countries are presented within the tables below due to concerns relating to sovereign
risk. This heightened risk is driven by a number of factors impacting the associated sovereign including high
public debt levels and/or large deficits, limited access to capital markets, proximity of debt repayment dates,
poor economic fundamentals and outlook (including low gross domestic product growth, weak
competitiveness, high unemployment and political uncertainty). Some of these countries have accepted
238
“bail out” packages. Fundamentals have improved to some extent, with the growth outlook for these
economies stabilizing, competitiveness improving and external imbalances (i.e., current account deficits)
narrowing. This adjustment process has been supported by the ECB’s Outright Monetary Transactions
(“OMT”) program and the European Stability Mechanism which have provided a credible (if untested)
backstop and helped to contain funding costs. Nonetheless, risks remain elevated as evidenced by still
wide credit default swap spreads in particular for the most vulnerable countries. Further, on February 7,
2014, the Second Senate of the German Federal Constitutional Court held that there are important reasons
to assume that the OMT program exceeds the European Central Bank’s monetary policy mandate and thus
infringes the powers of the Member States and violates the prohibition of monetary financing of the
budget. It therefore referred several questions to the Court of Justice of the European Union for a
preliminary ruling. The European Court of Justice’s decision and its potential impact on the effectiveness of
the OMT program are not yet assessable.
For the presentation of its exposure to these certain eurozone countries, Deutsche Bank applies two
general concepts as follows:
• In its “risk management” view, Deutsche Bank considers the domicile of the group parent, thereby
reflecting the one obligor principle. All facilities to a group of borrowers which are linked to each other
(e.g., by one entity holding a majority of the voting rights or capital of another) are consolidated under
one obligor. This group of borrowers is usually allocated to the country of domicile of the respective
parent company. As an example, a loan to a counterparty in Spain is Spanish risk as per a domicile view
but considered a German risk from a risk management perspective if the respective counterparty is
linked to a parent company domiciled in Germany following the above-mentioned one obligor principle.
In this risk management view Deutsche Bank also considers derivative netting and present exposures
net of hedges and collateral. The collateral valuations follow the same stringent approach and principles
as outlined separately. Also, in its risk management Deutsche Bank classifies exposure to special
purpose entities based on the domicile of the underlying assets as opposed to the domicile of the
special purpose entities. Additional considerations apply for structured products. If, for example, a
structured note is issued by a special purpose entity domiciled in Ireland, it will be considered an Irish
risk in a “country of domicile” view, but if the underlying assets collateralizing the structured note are
German mortgage loans, then the exposure would be included as German risk in the “risk
management” view.
• In its “country of domicile view” Deutsche Bank aggregates credit risk exposures to counterparties by
allocating them to the domicile of the primary counterparty, irrespective of any link to other
counterparties, or in relation to credit default swaps underlying reference assets from, these eurozone
countries. Hence Deutsche Bank also includes counterparties whose group parent is located outside of
these countries and exposures to special purpose entities whose underlying assets are from entities
domiciled in other countries.
Net credit risk exposure with certain eurozone countries – Risk Management View
(unaudited)
in € m.
Greece . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ireland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Italy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Portugal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Spain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
December 31, 2013
466
455
15,419
708
9,886
26,935
December 31, 2012(1)
646
1,443
17,553
1,187
11,737
32,566
1 Numbers adjusted due to reporting methodology update in PBC, reflecting PBC guarantees of approximately € 2 billion.
At year-end 2013, net credit risk exposure was down € 5.6 billion since year-end 2012. This was mainly
driven by decreases across Spain, Italy and Ireland from reductions in Deutsche Bank’s NCOU portfolio.
Cyprus credit exposure stands at € 16 million (risk management view) and will continue to be tightly
managed.
Deutsche Bank’s above exposure is principally to highly diversified, low risk retail portfolios and small and
medium enterprises in Italy and Spain, as well as stronger corporate and diversified mid-cap clients.
Deutsche Bank’s financial institutions exposure is predominantly geared towards larger banks in Spain and
Italy, typically under collateral agreements, with the majority of Spanish financial institutions exposure being
covered bonds. Sovereign exposure is moderate and principally in Spain and Italy.
239
The following tables, which are based on the country of domicile view, present Deutsche Bank’s gross
position, the included amount thereof of undrawn exposure and Deutsche Bank’s net exposure to these
European countries. The gross exposure reflects Deutsche Bank’s net credit risk exposure grossed up for
net credit derivative protection purchased with underlying reference assets domiciled in one of these
countries, guarantees received and collateral. Such collateral is particularly held with respect to the retail
category, but also for financial institutions predominantly in relation to derivative margining arrangements,
as well as for corporates. In addition, the amounts also reflect the allowance for credit losses. In some
cases, Deutsche Bank’s counterparties’ ability to draw on undrawn commitments is limited by terms
included within the specific contractual documentation. Net credit exposures are presented after effects of
collateral held, guarantees received and further risk mitigation, but excluding net notional amounts of credit
derivatives for protection sold/(bought). The provided gross and net exposures to certain European
countries do not include credit derivative tranches and credit derivatives in relation to Deutsche Bank’s
correlation business which, by design, is structured to be credit risk neutral. Additionally the tranche and
correlated nature of these positions does not lend itself to a disaggregated notional presentation by country,
e.g., as identical notional exposures represent different levels of risk for different tranche levels.
Gross position, included undrawn exposure and net exposure to certain eurozone countries –
Country of Domicile View
(unaudited, unless
stated otherwise)
in € m.
Greece
Gross . . . . . . . . . .
Undrawn . . . . . .
Net . . . . . . . . . . . .
Ireland
Gross . . . . . . . . . .
Undrawn . . . . . .
Net . . . . . . . . . . . .
Italy
Gross . . . . . . . . . .
Undrawn . . . . . .
Net . . . . . . . . . . . .
Portugal
Gross . . . . . . . . . .
Undrawn . . . . . .
Net . . . . . . . . . . . .
Spain
Gross . . . . . . . . . .
Undrawn . . . . . .
Net . . . . . . . . . . . .
Total gross . . . . . . .
Total undrawn . .
Total net(4) . . . . . . . .
Sovereign
Dec.
Dec.
31,
31,
2013 2012(1)
Financial
Institutions
Dec.
Dec.,
31,
31
2013
2012
Corporates
Dec.
Dec.
31,
31,
2013
2012
Retail
Dec.
Dec.
31,
31,
2013
2012
52
0
52(5)
40
0
39(5)
605
18
23
715
8
67
1,338
101
214
1,501
160
356
9
3
3
765
0
175(5)
932
0
400(5)
721
6
438
1,438
14
1,016
6,177
1,680
4,537
6,612
1,581
4,768
48
1
9
1,900
3,059
0
1
1,374(5) 2,969(5)
5,232
955
2,500
7,154
809
3,263
8,400
3,407
6,529
8,740 19,650 20,291
3,162
190
261
6,653 6,994 7,749
257
36
221
456
52
322
1,392
172
849
1,548
188
769
1,473
1,659 3,349
4
0
662
1,452(5) 1,659(5) 2,389(5)
5,605
563
3,683
38
0
25(5)
4,228
4
258
0
153(5)
0
0
0
0
0
0
56 1,958(3)
2
358(3)
7 1,951(3)
4,300(3)
366(3)
2,922(3)
648
2
572
Total(2)
Dec.
Dec.
31,
31,
2013
2012
2,004
122
291
2,265
170
465
9,669 13,338
2,045 1,963
7,110 9,113
149 35,830 39,393
0
4,554 4,233
(51) 17,969 20,583
2,375
5
501
78
0
78
33
0
32
9,288 10,296 10,721 11,106
3,321 2,684
521
547
6,436 7,683 2,060 1,789
637
3
502
221
0
149
5,948 10,164 15,368 26,595 28,697 32,591 33,837
1 1,677 1,446 8,680 7,775
743
817
3,321
364
4,703 76,899 88,553
366 11,468 10,405
3,103
3,052 39,666 46,901
3,078(5) 5,220(5)
5,572
8,351 18,566 20,229
2,163
28
282
9
2
3
Other
Dec.
Dec.
31,
31,
2013
2012
9,347 10,049
3,928
237
1,456
4,670
245
1,777
25,468 28,887
4,510 3,794
12,839 14,963
1 Includes impaired available for sale sovereign deb

printmgr file - Deutsche Bank

Transcription

Similar documents

Interim Report as of June 30, 2016

Deka-PrivatVorsorge AS, Jahresbericht

Deutsche Bank Aktiengesellschaft

Konzernabschluss - Geschäftsbericht 2015